New Delhi, Sept. 9 -- The potential joint venture between Indian conglomerate JSW Group and German auto giant Volkswagen Group will focus on cutting costs through supplier synergies and using India as an export hub for Europe to counter competition from Chinese carmakers, according to two executives in the know. It would also help de-risk JSW's auto portfolio, which is heavily reliant on China, experts said.

The two sides signed a non-binding memorandum of understanding (MoU) on Tuesday to explore establishing the joint venture in India. This coincides with a broader global restructuring at Volkswagen Group to pare down costs. The MoU was signed by JSW Green Mobility-the primary entity through which the conglomerate is building its autom...