Key highlights
- Skoda Auto Volkswagen India and JSW Group have signed a non-binding MoU to explore a strategic joint venture.
- The proposed partnership will focus on new products, deeper localisation, manufacturing and R&D in India.
- The venture could cover petrol, diesel, hybrid, plug-in hybrid and electric vehicles for India and export markets.
Skoda Auto Volkswagen India and the JSW Group have taken the next step towards a potential strategic partnership in India by signing a non-binding Memorandum of Understanding. The agreement will allow both companies to explore the structure and scope of a proposed joint venture.
The partnership is planned as a two-party arrangement with joint control, although the companies have not yet disclosed the proposed shareholding, investment amount or other financial details. These aspects will be discussed during the next phase of negotiations before any definitive agreement is signed and regulatory approvals are sought.
New products and greater localisation
The proposed partnership will combine Skoda’s engineering and product capabilities with JSW’s manufacturing and execution expertise in India. The focus will be on expanding the product portfolio, increasing local content and strengthening manufacturing and R&D capabilities.
Importantly, the proposed venture is not limited to EVs. The companies are evaluating vehicles powered by internal combustion engines, hybrids, plug-in hybrids and electric powertrains. These products could cater to both the Indian market and export destinations.
For Volkswagen Group, greater localisation could help improve the competitiveness of future products in India while reducing dependence on imported components and vehicles. The collaboration could also provide access to JSW’s broader industrial and manufacturing capabilities.
A significant move for both companies
The MoU comes after several months of discussions between the two sides. Skoda Auto currently leads Volkswagen Group’s operations in India, with the group looking to strengthen its position in a market where scale and localisation are increasingly important.
For JSW, the proposed venture would add another major passenger vehicle business to its automotive portfolio, alongside JSW MG Motor India and its own JSW Motors operations.
However, it is worth stressing that the MoU is exploratory and non-binding. There is no definitive joint venture yet, and details such as ownership, investment, products and manufacturing plans still need to be finalised.
Also read: New Hyundai compact EV India launch confirmed by March 2027
