JSW in Advanced Talks to Buy Into Volkswagen's India Business

JSW Group is in advanced talks to acquire a stake, potentially a majority holding, in Volkswagen AG's India business. The deal would bring fresh capital to the German carmaker's local unit, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The negotiations centre on Skoda Auto Volkswagen India Pvt Ltd, which runs the group's car brands in the country, including Skoda, Volkswagen, Audi and Porsche. Both sides aim to reach an agreement in the coming weeks, although the terms are not settled and a transaction may not follow, the report said.

A Volkswagen spokesperson did not confirm the talks, saying only that the group regularly evaluates opportunities to advance its strategy in India's fast-growing market.

Volkswagen entered India through Skoda in 2001 but has since struggled to build a significant share in the world's third-largest car market. The group held just 2.34 percent of the passenger vehicle market in FY26, per FADA data, behind Kia India's 5.94 percent, and ahead of JSW's own MG Motor venture that accounted for 1.40 percent share. 

A tie-up would give it the scale and distribution that have proved elusive on its own.

For JSW, the move would mark a second push into carmaking. The conglomerate bought a 35 per cent stake in MG Motor India from China's SAIC in 2023 and now sells vehicles through the JSW MG Motor India venture, launched in 2024.

India has meanwhile grown more central to Volkswagen's plans beyond Europe, following its withdrawal from Russia and its planned exit from China.