Partnership Architecture
Base Capex Requirement
$1,200 Mn
Partner Capex Absorption
50%
Target Localization (DVA)
92%
Annual Volume Capacity
140,000 units
Avg Ex-Factory Price
$14,500
EV Powertrain Share
35%
Exposure Breakdown
VW Group Capital at Risk: $600 Mn
Partner Co-Financing: $600 Mn
Tariff Shield (India PLI/CBU avoided): $1,120 / unit
Partner Co-Financing: $600 Mn
Tariff Shield (India PLI/CBU avoided): $1,120 / unit
Shared Capex Savings
50% Risk Offloaded
Unit Cost Reduction
16.4%
-$1,840 / vehicle
Breakeven Horizon
3.9 Yrs
vs 6.8 Yrs Standalone
Annualized ROCE
19.2%
Optimal Capital Efficiency
Risk Absorption Index
High (84/100)
Resilient Supply Chain
Capex Risk Sharing & Allocation ($ Mn)
$1,200M Base
BOM Cost & Tariff Waterfall ($/Unit)
-$1,840
Cumulative Free Cash Flow Horizon (Standalone vs JV Structure)
Breakeven: 3.9 yrs JV vs 6.8 yrs Solo
Strategic Executive Summary: A 50:50 Equity Joint Venture structure distributes the initial $1,200 Mn capex liability equally, preserving $600 Mn for VW/Skoda Group balance sheet. Scaling domestic value addition from 68% to 92% compresses vehicle BOM by $1,840 per unit through local stamping, battery pack assembly, and tariff mitigation, delivering an annualized ROCE of 19.2% and a resilient breakeven within 3.9 years at 140,000 units/year.