BRICS leaders gather in India, but does the group have a clear purpose?

Volkswagen is looking into a potential partnership with Indian conglomerate JSW Group to boost its competitiveness and profitability in India, the world's third-largest car market. This move aims to broaden Volkswagen's product offerings in India, bolster local sourcing, and bolster manufacturing capabilities, according to a company spokesperson.

The proposed deal surfaces at a time when Volkswagen has faced difficulties expanding its presence in India, a crucial market in its strategy to grow beyond Europe. The partnership with JSW Group, a steel-to-energy conglomerate, is expected to be a joint venture with shared control, defined operational roles, and governance mechanisms intended to facilitate faster decision-making.

JSW Group entered India's passenger vehicle market in 2023 through a joint venture with China's SAIC Motor, known as JSW MG Motor India, which sells MG-branded cars. The collaboration is expected to explore ways to boost local sourcing, share vehicle platforms, and expand production capacity. India has become a vital market for Volkswagen, with Skoda Auto currently leading the group's operations in the country.

Despite being present in the Indian market for over two decades, Volkswagen's market share remains around 2%. In 2024, the company faced a $1.4 billion tax demand from Indian authorities for allegedly evading import taxes, which it denies, claiming full compliance with Indian laws and regulations. The matter is still under judicial review.

Volkswagen is under investor pressure to cut costs and enhance competitiveness, as Chinese automakers expand in Europe. The company also grapples with tariff pressures and a slowdown in China, another significant market for Volkswagen.