MUMBAI — JSW Group is establishing a standalone entity to drive its prospective electric vehicle alliance with Volkswagen, according to company representatives briefed on the negotiations. The structure would house the partnership's manufacturing and technology commitments in India.

The conglomerate, led by chairman Sajjan Jindal, has been expanding aggressively into automobiles through JSW MG Motor India and separate electric vehicle plans. A dedicated joint-venture company would allow JSW to ring-fence the Volkswagen collaboration from its existing ventures and clarify ownership stakes.

Volkswagen has sought a stronger foothold in India, where it has struggled to build market share against Maruti Suzuki, Tata Motors and Hyundai. A tie-up with a domestic industrial group offers access to local supply chains, capital and manufacturing capacity as the company pushes electrification in emerging markets.

Industry analysts said a standalone structure would simplify regulatory approvals and reduce conflicts with JSW's other automotive interests. The talks are preliminary, and both companies have declined to confirm financial terms or a timeline for a definitive agreement.

India's government has courted foreign carmakers with production-linked incentives for electric vehicles and battery cells. A Volkswagen-JSW venture would join a wave of investment as global manufacturers position for what the Society of Indian Automobile Manufacturers projects to be one of the world's largest EV markets.