Volkswagen and Skoda have signed a memorandum of understanding with the Indian conglomerate JSW to explore a strategic partnership. The preliminary agreement proposes a joint venture where JSW would hold a 51 percent stake, leaving Volkswagen with 49 percent.
The collaboration aims to localize production and expand development capabilities in India. Skoda CEO Klaus Zellmer noted that the partnership seeks to leverage JSW’s local networks to better navigate the Indian market, where the group currently holds a market share of just under three percent.
In 2025, Skoda doubled its sales in India, while the combined sales of VW and Skoda grew by 36 percent to 117 000 vehicles. All units sold were gasoline-powered models. The companies now aim to introduce electric vehicles to the Indian market by 2028.
The potential venture may utilize Volkswagen’s India Main Platform for future electric models. JSW, which already operates a joint venture with SAIC and plans to launch its own brand using Chery technology, has not yet issued an official comment on the deal.
India currently ranks as the world’s third-largest car market, with 4.6 million passenger vehicles sold in the last fiscal year. This figure represents an eight percent increase compared to the previous year, though the market remains smaller than those of China and the USA.
