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Volkswagen puts India EV investment on hold amid JSW partnership talks

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Volkswagen puts India EV investment on hold amid JSW partnership talks

The latest decision to hold back further investments could delay its plans to strengthen its position in India's electric passenger vehicle market.

Volkswagen pauses India EV investment, awaiting clarity on its potential JSW partnership

Volkswagen Group has paused further investments in its electric vehicle (EV) programme for India as it awaits greater clarity on a potential partnership with Sajjan Jindal-led JSW Group , people familiar with the matter told Bloomberg. The German automaker has completed design work that would allow it to quickly scale up the project using a low-cost EV architecture originally developed for China. However, it is waiting for a clearer business plan before committing additional funds, the people said. The pause comes as Volkswagen steps up its global cost-cutting efforts amid weak demand in Europe and intensifying competition from Chinese automakers. The company is seeking to reduce investments by around 15 per cent and has outlined plans to eliminate tens of thousands of jobs as part of its efforts to lower costs. Advt

Volkswagen had already decided to reduce the cost of developing EVs for India by a third last year while looking for a local partner, Bloomberg had previously reported. The latest decision to hold back further investments could delay its plans to strengthen its position in India's electric passenger vehicle market. The company is considering bringing a version of its CMP 21 electric vehicle architecture to India. However, localisation of components and domestic manufacturing would be necessary to bring costs down and make the vehicles competitive in the price-sensitive Indian market, according to the people cited in the report.


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