Skoda Auto Volkswagen India (SAVWIPL) has entered into discussions with JSW Group for a strategic equity partnership aimed at funding and developing its next-generation SUV portfolio based on the CMP21 platform.
The Volkswagen Group's Indian subsidiary abandoned the MQB A0 37 platform in favour of the more versatile CMP21 architecture, which is projected to support a range of internal combustion, hybrid, and electric SUVs. With the project's estimated investment exceeding €1 billion, the Volkswagen Group has indicated that Skoda-VW India must bring in a local equity partner to share the financial burden and secure project approval.
Initial talks with Mahindra & Mahindra faltered due to divergent strategic priorities and valuation disagreements. JSW Group, which also holds an equity stake in JSW-MG India, has since emerged as the preferred partner.
Speaking to Autocar Professional at the Munich Mobility Show, Klaus Zellmer, global CEO of Skoda Auto, acknowledged the ongoing search for a partner, saying: "Partnerships remain a strategic option to combine cultural alignment with business goals. The train has not left the station yet."
Preparations on the CMP21 platform are continuing despite the deal not yet receiving a greenlight, in order to avoid delays to the planned mid-2027 launch.
The discussions reflect a wider trend of international automakers turning to local partnerships to manage risk, navigate market complexities, and pursue growth in India, which is now the world's third-largest automotive market.