Skoda VW India, JSW Group Sign MoU For Strategic Partnership

Skoda Auto Volkswagen India has entered into a non-binding Memorandum of Understanding (MoU) with JSW Group to explore a potential strategic partnership in the Indian market. The proposed collaboration would involve joint control and is aimed at expanding the Volkswagen Group’s presence in India through a broader product portfolio, increased localisation and stronger manufacturing and research and development capabilities.

The two companies have not yet disclosed the proposed shareholding structure, investment commitment or other financial details. These aspects are expected to be discussed during the next phase of negotiations, before the companies move towards definitive agreements and seek the necessary regulatory approvals.

According to Skoda Auto Volkswagen India, the partnership is expected to have clearly defined responsibilities and decision-making mechanisms for both parties. The companies will evaluate opportunities across products, manufacturing and R&D, with the aim of improving scale and competitiveness in the Indian market.

EVs and localisation could be key focus areas

Electric vehicles are expected to be an important part of the potential collaboration. The partnership could support investment in EV development and localisation, including products based on Volkswagen Group’s proposed India Main Platform.

The architecture is derived from the China Main Platform and is expected to be adapted for Indian regulations, sourcing requirements and the domestic supplier ecosystem. It could potentially support electric SUVs for the Skoda and Volkswagen brands.

Greater local sourcing could also help reduce manufacturing costs and improve the competitiveness of future EVs in India. However, specific models, timelines and investment plans have not been officially confirmed at this stage.

The companies are also examining opportunities to utilise manufacturing infrastructure within the wider JSW Group. One area reportedly under consideration is greater localisation of Skoda products, including the Kodiaq, at JSW Motors’ facility in Sambhaji Nagar.

The next-generation Kodiaq platform is also understood to be under evaluation for local production. Such a move could eventually result in a locally manufactured three-row SUV, although neither company has confirmed this product plan.

Manufacturing and exports could gain importance

The potential partnership could extend beyond the Indian market, with exports also expected to be part of the discussions. Volkswagen Group’s international distribution network could provide an opportunity to use India as a manufacturing base for vehicles destined for overseas markets.

An eventual India-European Union free trade agreement could further improve the viability of exports to Europe, although this remains dependent on future trade arrangements and the outcome of the partnership discussions.

For Volkswagen Group, India continues to be an important market within its broader internationalisation strategy. Skoda Auto currently leads the Group’s operations in the region and has been tasked with expanding its presence in India and neighbouring markets.

Skoda Auto Volkswagen India sees strong growth

The proposed partnership comes after a strong year for Skoda Auto Volkswagen India. The company recorded around 36 percent growth in domestic volumes in 2025.

Skoda recorded particularly strong growth, with its sales in India doubling during the year. The company also registered its strongest year-on-year growth in India among all the markets in which it operates globally.

The MoU is currently non-binding, meaning the proposed partnership is not yet a finalised joint venture. Further negotiations will determine the investment structure, ownership, product plans and manufacturing arrangements before any definitive agreement is reached.

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