KATHMANDU : Volkswagen AG is reportedly close to selling a stake in its Indian business to the JSW Group, as the German automaker looks to strengthen its presence in one of the world’s fastest-growing automotive markets.
According to a Bloomberg News report, the two companies are in advanced discussions, with the deal expected to be finalized in the coming weeks. The investment would provide fresh capital to Skoda Auto Volkswagen India, which oversees the group’s operations in the country.
Senior executives from Volkswagen and JSW recently met to resolve key issues, including the company’s valuation and the amount of capital each side would contribute.
Responding to the report, a Skoda spokesperson declined to comment on the ongoing discussions. However, the spokesperson said the company is continuously evaluating business opportunities to support its long-term strategy in the dynamic Indian market.
Volkswagen and JSW have been exploring a potential partnership for nearly three years. Despite the latest progress, there is still no certainty that the negotiations will result in a final agreement.
A partnership with JSW could help Volkswagen expand its footprint in India by leveraging the Indian conglomerate’s manufacturing expertise and growing presence in the automotive sector.
