Skoda And JSW Sign Non-Binding MoU To Explore Automotive JV

Skoda Auto and JSW Green Mobility Limited, part of the JSW Group, have signed a non-binding Memorandum of Understanding (MoU) to explore setting up a strategic joint venture in India. The proposed partnership would combine Skoda’s engineering and product development capabilities with JSW Group’s manufacturing scale and local presence.

The proposed joint venture could develop, manufacture and sell passenger vehicles for India as well as export markets. The discussions cover multiple powertrain options, including internal combustion engines, electric vehicles, plug-in hybrids and hybrids. However, the two companies are still in the early stages of discussions, and no definitive agreement has been signed yet.

Proposed JV To Focus On Localisation And New Products

The proposed partnership is expected to focus on expanding the product portfolio, increasing localisation and strengthening manufacturing and R&D capabilities in India. Both companies are also evaluating ways to create platform and manufacturing synergies to improve scale and make future products more competitive.

The partnership could also support Volkswagen Group’s plans to increase India’s role as a regional manufacturing and export hub. Vehicles developed through the proposed JV could serve both the domestic market and selected international markets.

JSW Could Take Majority Stake, But Joint Control Is Planned

A 51:49 ownership structure, with JSW Group holding the larger stake, has reportedly been among the structures under discussion. However, the final ownership structure and commercial terms have not been confirmed and will be decided through further negotiations.

Despite the possibility of JSW holding a majority economic stake, Skoda has said the proposed partnership would operate under joint control. The companies would also need to complete internal approvals and obtain the necessary regulatory clearances before any final transaction can take place.

Potential To Bring More Locally Made Models

Deeper localisation could be one of the key benefits of the proposed partnership. The companies are evaluating the use of manufacturing assets within the JSW Group, including the upcoming JSW Motors facility at Chhatrapati Sambhajinagar in Maharashtra.

The proposed arrangement could also support higher localisation of future Skoda and Volkswagen models. Products such as the Skoda Kodiaq have been discussed in connection with potential manufacturing plans, although neither company has officially confirmed specific models or production timelines under the proposed JV.

EVs And Export Plans Under Discussion

Electric vehicles are also expected to remain an important part of the discussions. Potential JSW investment could support products based on Volkswagen Group’s proposed India Main Platform (IMP), an EV architecture being developed for the Indian market. The platform could help the companies develop more locally focused electric models while supporting deeper localisation.

The proposed JV could also help Volkswagen Group increase vehicle exports from India. Producing vehicles for both domestic and international markets could improve factory utilisation and spread development and manufacturing costs across higher volumes. However, the venture remains subject to negotiations, valuation, approvals and regulatory clearances. A binding agreement is reportedly targeted by the end of 2026, while the proposed 51:49 structure and other commercial terms are yet to be finalised.

For more upcoming SUV updates in India, check out the Honda Elevate facelift India launch and what to expect from the updated model.