Skoda expects to finalise its search for an Indian partner this year, global CEO Klaus Zellmer said on the sidelines of the new Slavia’s launch in Mumbai on Tuesday. “We are in discussions. I’m deeply convinced that our momentum can be much stronger if we have a local partner with strong roots... But I’m confident that this year we are going to nail it,” he added.
Zellmer said Skoda is being careful with the partner talks as the decision will have a long-term impact on the business. Asked if majority ownership was important in the proposed partnership, Zellmer said, “It does. You need somebody to have a clear say... If you choose a partner for life, you need to choose carefully. You need to lay out what you’re in for.” However, he declined to elaborate on the structure under discussion. This comes a few weeks after we exclusively reported that Skoda Auto Volkswagen India (SAVWPL), which oversees both VW and Skoda brands here, and the JSW Group are in the final stages of talks for a manufacturing joint venture, with the JSW Group expected to hold the majority stake.
We also reported that the two companies are likely to sign a non-binding memorandum of understanding within the next two months. Zellmer’s latest comments are the clearest sign yet that Skoda expects the partnership talks to be wrapped up in 2026.
What’s in it for SAVWPL?
Autocar Professional, our sister publication, understands that the Volkswagen Group is likely to invest around 2 billion euros in India over the next decade across several projects. A large part of this investment is expected to be used for vehicles based on the India Main Platform (IMP), the group’s EV platform for the Indian market. The IMP is derived from the China Main Platform (CMP), allowing the Volkswagen Group to adapt an existing EV platform to Indian regulations, local suppliers and localisation needs. The platform could support several electric SUVs for Skoda and Volkswagen in the coming years. Higher localisation will be important to keep costs down and reduce reliance on imports.
Notably, the talks are not limited to manufacturing. Autocar Professional understands that sales and marketing operations across the group’s brands are also part of the discussions. A few years ago, Skoda, Volkswagen, Audi, Porsche and Lamborghini brought their sales operations under Skoda Auto Volkswagen India along with the manufacturing business. This has also brought the premium brands into the scope of the talks.
India’s growing importance within the VW Group
Officials from the global boards of Skoda and Volkswagen have also visited India separately to review local operations and their plans for the market. These visits show how important the country has become for Volkswagen Group as it looks at the products, technology and investment needed for its next phase of growth. This will be important as Skoda Auto Volkswagen India looks to move beyond its current range of locally made petrol models. The next phase is expected to need significant investment in EVs, product development, engineering and manufacturing.
“We brought all our VW colleagues over. They’re also here in order to help them understand why we are so passionate about India,” Zellmer said. When asked if the wider Volkswagen Group shared Skoda’s vision for India, Zellmer replied that they do.
The investment is likely to be spread across several projects over the next decade, rather than being made as a single commitment. Its final scope and timing will depend on the partnership structure and the approvals required from the companies involved.
Skoda to develop more products locally
The Kylaq is an important example of Skoda’s India-focused product strategy. More than 45,000 units were sold in 2025, making it the biggest contributor to the group’s domestic sales. The Kylaq’s sales performance and Skoda’s growing business in India have also strengthened the case for giving its local operations more responsibility. When asked if Skoda plans to develop more models locally like the Kylaq, Zellmer said, “Yes”, without sharing any details.
While talks for a partnership continue, Skoda is already moving more development work to India and growing its local engineering team. Zellmer mentioned that the company is increasing its number of engineers in India “dramatically” as more future development projects are shifted to the country. “We’re really using the momentum that this country is creating.”
A deal this year would also provide clarity on how the Volkswagen Group plans to fund its next phase of growth in India while giving Skoda and Volkswagen a stronger base for producing cars locally.
Dipan Sur
Dhruv Dhaka
Viraaj Bhatnagar
