Volkswagen weighs JSW partnership for India business

Volkswagen is in advanced talks with JSW Group over an investment in Skoda Auto Volkswagen India. The proposed deal could reshape the carmaker's India strategy as competition intensifies.JSW may acquire controlling stake, negotiations ongoing on valuation and investment size. Volkswagen may be close to getting an Indian partner. The German carmaker is in talks with the JSW Group over a potential investment in Skoda Auto Volkswagen India. In a move that could see the Indian conglomerate acquire a controlling stake in the business, reported Moneycontrol.The report said the two sides are currently negotiating the company's valuation, the size of the investment and future capital commitments. However, the discussions are still underway and may not necessarily result in a deal.If the transaction goes through, it would mark one of Volkswagen's biggest strategic shifts in India since it entered the country in 2007. Unlike several global automakers that partnered with Indian companies, Volkswagen built its India operations independently and invested heavily in local manufacturing and product development. Over the years, the German automaker set up manufacturing plants in Pune and Chhatrapati Sambhajinagar (formerly Aurangabad), brought brands including Volkswagen, Skoda, Bentley, Lamborghini and Porsche under one umbrella, and rolled out its India 2.0 strategy. The programme led to the launch of models such as the Volkswagen Taigun and Virtus, along with the Skoda Kushaq and Slavia.Despite these investments, Volkswagen has remained a relatively small player in India's passenger vehicle market. According to the report, Volkswagen and Skoda together accounted for around 2% of the domestic passenger vehicle market at the end of the June quarter, although they held around 10% of the country's passenger vehicle exports. The report added that India's automobile market has become more competitive with the rapid shift towards electric vehicles and software-defined vehicles, prompting global automakers to rethink their long-term strategies.Responding to queries from Moneycontrol, a Skoda Auto Volkswagen India spokesperson said India remains a key market in the company's internationalisation plans and that it is evaluating various business opportunities to implement its strategy in the fast-changing Indian market. However, the company declined to comment on market speculation.The report also noted that JSW Group has been expanding its presence in the automobile sector. The conglomerate has already partnered with China's SAIC in MG Motor India and is preparing to launch vehicles under its own brand while also investing in electric and hybrid vehicle partnerships.According to the report, a partnership with JSW would mirror Volkswagen's strategy in China, where its joint ventures with SAIC Motor and FAW Group helped it build one of its largest overseas businesses.- EndsPublished On: Jul 21, 2026 17:47 IST