JSW Group eyes multiple global auto OEM alliances

livemint.com:

Tata Motors faltered due to what insiders describe as Volkswagen’s “slow pace" and a reluctance to relinquish operational control, leading to a loss of interest from the Indian players. The company’s India operations are helmed by the Skoda brand in the Skoda Auto Volkswagen India Group, which will soon announce the next phase of its India strategy. “India’s automotive landscape is characterized by a dominance of the top five OEMs, with a highly fragmented tail end of the market.

This concentration makes operations challenging for many companies, prompting strategic collaborations and alliances. The priority for international automotive players like Volkswagen in India is to establish a standalone business, but prevailing circumstances are pushing them toward strategic alliances. The evolving automotive landscape in India emphasizes electrification, technology, and the growing importance of luxury across market segments," Ravi Bhatia, president, auto intelligence firm Jato Dyanmics India said.

“However, these strategic collaborations are purpose-based and not necessarily permanent. The trajectory of these alliances will depend on how they evolve and the role each stakeholder plays in the dynamic Indian market," he added, explaining that while SAIC needs a JV partner to expand in the Indian market, JSW needs technology access. Volkswagen’s India operations are seeking local support for sustaining growth and making it a Tier 1 hub in the future, considering the scale the group already has in China, one of the people cited above said.