VW and Škoda explore joint enture with JSW in India
The Volkswagen Group is exploring a joint venture with the JSW conglomerate for its brands Skoda and VW active in India. This could also benefit the EV platform the brand have planned for India - where they currently only offer combustion engine vehicles.
Indian internal combustion model Skoda Klyq
Image: Skoda
Where the Volkswagen Group’s operations in India are concerned, the Czech brand Škoda takes the lead. This is partly because Škoda has been active in the Indian market for six years longer than the VW brand – since 2001, whereas VW only entered in 2007.
In an interview with _T-Online_, Škoda CEO Klaus Zellmer discussed in detail Škoda’s and Volkswagen Group’s business in India, which is set for significant expansion. After all, Škoda doubled its sales in India in 2025, achieving the highest year-on-year growth rate across all Škoda markets. Together, VW and Škoda increased their sales in India by 36 per cent to 117,000 vehicles.
Škoda hopes for investments through new partner
“To benefit from the growth in India, we must continue to invest massively,” Klaus Zellmer told _T Online_. “That’s why we are evaluating different scenarios. One is stand-alone: we remain independent. The other option is to team up with a strong local partner who would contribute financially to the investments.”
For the partnership option, the company has signed an MoU with the multinational JSW Group – something Zellner described as an expression of intent “to explore the fundamental principles of a strategic partnership. The planned collaboration aims to enhance competitiveness through an expanded product portfolio, greater localisation, and the expansion of production and development capabilities.” In his interview, he added: “I am convinced that we can become better with an Indian partner: with local roots, local networks, and cultural ties to truly understand what is right and important in India.”
The partnership could also play a key role in VW and Škoda’s electric vehicle strategy for India. According to the Indian magazine _Autocar Professional_, JSW’s potential investment could finance products based on the planned India Main Platform (IMP). This is an electric vehicle architecture intended for India, derived from the China Main Platform and adapted to Indian regulations, the local supplier base, and a higher degree of localisation. Last year, it was reported that VW/Škoda could not invest as much of its own money in the platform as originally planned. Currently, neither Škoda nor VW offers electric vehicles in the Indian market – only internal combustion engine models. This is set to change in 2028.
India as an alternative to China
Zellmer sees India as a strong alternative to the Chinese market, from which Škoda has withdrawn: “The Indian market today is as dynamic as the Chinese market was a few years ago. We have two plants in India, an established dealer network, and very good quality. With just under three per cent market share, we are a relatively small player, but Škoda is still the most successful European brand in India. This is a solid foundation to build on.” Additionally, Chinese automakers have so far struggled to invest in India—an opportunity Škoda now aims to seize.
As reported by _Handelsblatt_, Volkswagen is apparently even willing to cede majority control of the planned joint venture to JSW. According to multiple Indian media outlets, this could result in a joint venture where JSW holds 51 per cent and VW retains 49 per cent. Rumours about such a venture emerged as early as August.
Partnerships in India have struggled so far
In the past, Volkswagen Group has had partnerships with Suzuki and Tata (owner of JLR) in India, while later negotiations with Mahindra failed. There were also reportedly talks with JSW in 2024, which did not lead to a collaboration at the time.
JSW, for its part, has been operating a joint venture with Chinese SAIC Group since 2023, centred around the MG Motor brand, which is also active in Europe. Additionally, JSW plans to establish its own electric vehicle brand under the name JSW Motors, utilising technology from Chinese manufacturer Chery.