Volkswagen Group is currently in talks with the Indian conglomerate JSW regarding a potential joint venture for its Skoda and VW brands. The partnership aims to boost local production, expand the product portfolio, and improve regional development capabilities. Skoda CEO Klaus Zellmer noted that the company is evaluating both independent growth and a strategic alliance with a local partner to secure necessary investments.
The proposed collaboration could involve JSW acquiring a 51 per cent majority stake in the venture, leaving Volkswagen with 49 per cent. This structure would support the development of the India Main Platform, an electric vehicle architecture designed for local regulations. Currently, both brands sell only combustion engine vehicles in India, with plans to introduce electric models by 2028.
Skoda has operated in India since 2001, while Volkswagen entered the market in 2007. In 2025, the combined sales of both brands in India reached 117 000 vehicles, marking a 36 per cent increase. Despite holding a market share of just under 3 per cent, Skoda remains the most successful European brand in the country, viewing India as a key strategic alternative to the Chinese market.
JSW already maintains a joint venture with SAIC Group focused on the MG Motor brand and intends to launch its own electric vehicle line, JSW Motors, using technology from Chery. Volkswagen has previously explored partnerships with Suzuki, Tata, and Mahindra, though the latter did not result in a deal. The current discussions with JSW follow earlier, unsuccessful talks held in 2024.
