Skoda Auto Volkswagen India Pvt. Ltd. (SAVWIPL) is reportedly close to securing a local partner for its electric vehicle ambitions in India. According to Indian media reports, the Volkswagen Group subsidiary is in advanced talks with industrial conglomerate JSW Group on a partnership that could pave the way for local EV production and platform development.
According to Autocar Professional, SAVWIPL plans to sell a 51 per cent stake to JSW Group. The report says the discussions are in their final stages and that the two companies could sign a non-binding memorandum of understanding by early October. Moneycontrol adds that senior executives from Volkswagen Group’s global management are due to meet in Mumbai on 18 August to discuss and potentially approve the proposed transaction.
The reported partnership would be significant for Volkswagen Group’s strategy in India, where its plans to manufacture affordable electric vehicles have progressed more slowly than initially envisaged. Bloomberg reported in November 2025 that SAVWIPL had reduced its planned investment in a dedicated EV platform for locally built models from $1 billion (around €866 million) to approximately $700 million (around €606 million). The move came amid wider cost-cutting measures at the German carmaker.
According to Autocar Professional, capital from JSW Group could now help fund the development of the India Main Platform (IMP), an architecture reportedly derived from Volkswagen Group’s China Main Platform (CMP). The platform is expected to underpin several locally manufactured electric SUVs for the Volkswagen and Skoda brands.
JSW Group is already active in India’s automotive sector. It owns a 35 per cent stake in JSW MG Motor, its joint venture with China’s SAIC Motor, and recently established JSW Motors as a standalone vehicle manufacturer. Initial plans for JSW Motors reportedly centre on rebadged models from Chery Group brands including iCar (iCaur), Jaecoo and Jetour. However, a partnership with SAVWIPL could eventually open the door to a broader technical collaboration with Volkswagen Group.
Manufacturing is also expected to play a central role in the proposed alliance. JSW Motors is currently building a greenfield production plant around 40 kilometres from SAVWIPL’s existing factory in Chhatrapati Sambhaji Nagar, Maharashtra. According to the reports, the companies are considering using the new facility for vehicles produced under the joint venture.
If the memorandum of understanding is signed as expected, the partners would then negotiate the final ownership structure before entering definitive agreements, subject to regulatory approval. According to the reports, the joint venture could therefore be formally established by the end of 2026 or in early 2027.
The move would give Volkswagen Group the local industrial partner it has reportedly been seeking for several years. Previous reports linked the company with discussions involving Mahindra & Mahindra, but those talks did not result in a partnership. A tie-up with JSW Group could now provide both the financial backing and local manufacturing footprint needed to advance the group’s EV localisation strategy in India.