JSW, Skoda Volkswagen Ink MoU for India Joint Venture, Deal Likely by December

To increase its competitiveness and profitability in the world's third-largest car market, Volkswagen is considering forming a strategic alliance with the Indian conglomerate JSW Group. The goal of the agreement is to increase Volkswagen's product offerings in the Indian market. Further, the deal would expand local sourcing and improve manufacturing, a business representative stated on 9 September.

This purchase is being offered while Volkswagen is now facing challenges in expanding its presence in India, a crucial market for the German automaker's aim to grow outside of Europe. It highlights the difficulties that international car companies encounter in maintaining a competitive edge in India's rapidly expanding market.

JSW & Volkswagen Partnership Aims at EV Transformation

This collaboration has the potential to bolster Skoda Auto Volkswagen India's upcoming investments in localisation and electrified vehicles. Skoda Auto Volkswagen is aware that a possible investment from JSW might assist finance future product programmes for the Skoda and Volkswagen brands, as well as the development and localisation of electric vehicles. According to the representative from Skoda Auto Volkswagen India, the goal of deep localisation and platform synergies is to help the company offer competitive products, grow at a faster rate, and boost profits in the Indian market.

Products built on Volkswagen Group's planned electric vehicle design for the nation, the India Main Platform, might receive a sizable portion of the investment that is now being considered. This platform would be customised to meet the specific needs of the Indian market by including local rules, sourcing requirements, and supplier base, while drawing inspiration from the China Main Platform. Skoda and Volkswagen may use it as a foundation for their electrified SUV lineup. To lower prices and increase competitiveness in the Indian market, a higher percentage of local content would be crucial for these cars.

Additionally, the utilisation of manufacturing assets throughout the JSW Group has been under evaluation by both parties. Also being considered is the possibility of localising the next-gen Kodiaq platform. It may be able to accommodate a domestically produced three-row SUV that competes with models like the Mahindra XUV 7XO if given the go light. The businesses involved, however, have not yet made these product announcements official.

Volkswagen Terming India as Key Market

The Volkswagen Group's internationalisation strategy is heavily focused on India. Skoda Auto is spearheading the Group's operations in the country, which will serve as a springboard to access surrounding areas and international markets.

The spokesperson also mentioned that the brand is consistently investigating new business opportunities in order to fully investigate the country's growth potential. The domestic volume of Skoda Auto Volkswagen India increased by almost 36% in 2025. Among all of Skoda's global markets, India had the most year-on-year growth, with sales doubling throughout the year.