MUMBAI: Skoda Auto a.s. and JSW Green Mobility Limited have signed a non-binding Memorandum of Understanding to explore setting up a strategic joint venture in India, taking their proposed automotive partnership forward.
The venture will look at developing, manufacturing and selling passenger vehicles for the Indian and export markets. The proposed portfolio will cover internal combustion engines, electric vehicles, plug-in hybrids and hybrids, according to an official statement shared by the JSW Group.
“At this stage, the MoU is exploratory and non-binding. The two companies are in early discussions, and there is no definitive agreement yet,” a JSW Group spokesperson said.
“Any firm arrangement would follow further negotiation, internal approvals and the necessary regulatory clearances. We will share more as and when there is something concrete to announce,” the spokesperson added.
Skoda Auto is leading the Volkswagen Group’s activities in India. The proposed venture seeks to combine the Czech carmaker’s engineering and product capabilities with JSW Group’s manufacturing scale and execution experience in the country.
The JSW Group has a presence across steel, infrastructure, energy, cement, paints and automobiles.
The announcement comes at a time when Skoda Auto CEO Klaus Zellmer and Volkswagen brand CEO Thomas Schäfer were both in Mumbai.
Proposed Venture to Have Joint Control
In a separate official statement shared with Autocar Professional, a Skoda Auto Volkswagen India spokesperson said the proposed two-party partnership would be based on joint control.
It will have clearly defined roles and mechanisms intended to support swift and effective decision-making. The collaboration will focus on expanding the product portfolio, deepening localisation and strengthening manufacturing and research and development capabilities in India.
“Deep localisation and platform synergies are intended to support competitive product offerings, increased scale, and improved profitability in the Indian market,” the Skoda Auto Volkswagen India spokesperson said.
Neither statement discloses the proposed shareholding or investment.
Autocar Professional had reported on August 5 that a 51:49 joint venture, with JSW holding the majority stake, was among the structures under discussion. The ownership structure and commercial terms will be subject to further negotiations.
The inclusion of internal combustion engines, electric vehicles, hybrids and plug-in hybrids indicates that the talks cover a wider product and manufacturing arrangement rather than an electric vehicle partnership alone.
EVs, Localisation and Exports
The proposed venture could support Skoda Auto Volkswagen India’s next phase of investment in electric vehicles, localisation and new products.
Autocar Professional understands that potential investment from JSW could help fund products based on the India Main Platform, Volkswagen Group’s proposed electric vehicle architecture for the country.
Derived from the China Main Platform, the architecture would be adapted to Indian regulations, sourcing requirements and the domestic supplier base. It could underpin electric SUVs for the Skoda and Volkswagen brands, with higher localisation helping the Group reduce costs.
The companies have also been evaluating the use of manufacturing assets across the JSW Group. Autocar Professional had earlier reported that greater localisation of products such as the Skoda Kodiaq was being examined at JSW Motors’ Sambhaji Nagar plant.
Localisation of the next-generation Kodiaq platform is also under evaluation. If approved, it could support a locally manufactured three-row SUV positioned in the Mahindra XUV700 segment. These product plans have not been officially confirmed.
Exports are part of the scope outlined by JSW. The proposed venture would develop and manufacture vehicles for overseas markets alongside its domestic operations, supporting Volkswagen Group’s plan to expand India’s role as a regional production base.
India is one of the biggest drivers of the Group’s internationalisation strategy. With Skoda Auto leading the Volkswagen Group’s operations in the region, the country is being developed as a hub for neighbouring regions and adjacent markets.
Skoda Auto Volkswagen India recorded domestic volume growth of around 36% in 2025. Skoda doubled its sales in the country during the year, registering the strongest year-on-year growth across all its markets globally.
“To fully explore the country’s growth potential, we are always considering new business opportunities,” the Skoda Auto Volkswagen India spokesperson said.