Skoda Auto a.s. (international) and JSW Green Mobility Limited, part of the JSW Group, have signed a non-binding Memorandum of Understanding to explore setting up a strategic joint venture in India. The proposed venture seeks to combine the Czech carmaker’s engineering and product capabilities with JSW Group’s manufacturing scale in India. The JV would look at developing, manufacturing and selling passenger vehicles for both the Indian market and exports across a range of powertrains, including internal combustion engine, electric, plug-in hybrid and hybrid.
“At this stage, the MoU is exploratory and non-binding. The two companies are in early discussions, and there is no definitive agreement yet. Any firm arrangement would follow further negotiation, internal approvals and the necessary regulatory clearances,” a JSW spokesperson told Autocar India. If the JV materialises, it could become the third vertical of JSW Group’s automotive business, after JSW MG Motor India and JSW Motors.
Proposed JV to have joint control
In a separate official statement shared with Autocar Professional, a Skoda spokesperson said the proposed two-party partnership would be based on joint control. “Deep localisation and platform synergies are intended to support competitive product offerings, increased scale and improved profitability in the Indian market,” the spokesperson added. We had reported that a 51:49 JV, with JSW holding the majority stake, was among the structures under discussion. The ownership structure and commercial terms will be subject to further negotiations.
New models, higher localisation part of the plan
The latest collaboration will focus on expanding the product portfolio, deepening localisation, and strengthening manufacturing as well as research and development capabilities in India. Interestingly, the inclusion of internal combustion engines suggests the talks cover a wider product and manufacturing arrangement rather than just electric vehicles.
As we reported, potential investment from JSW could also fund products based on the India Main Platform (IMP), Volkswagen Group’s proposed EV architecture for India. The IMP is derived from the China Main Platform, allowing the group to use an existing EV architecture and adapt it to Indian regulations, the local supplier base and localisation requirements.
The companies have also been evaluating the use of manufacturing assets across the JSW Group. This includes JSW Motors’s upcoming facility at Chhatrapati Sambhajinagar, where higher localisation of products such as the Skoda Kodiaq is likely being assessed. If cleared, it could support a locally manufactured three-row SUV to compete with the likes of the Mahindra XUV 7XO. Localising the platform will allow the companies to compete in one of the country’s fast-growing SUV segments with significantly higher local content. However, none of the companies has officially confirmed these product plans.
India to become an export hub for VW Group
Speaking of exports, the proposed venture would develop and manufacture vehicles for certain international markets alongside its domestic operations, supporting Volkswagen Group’s plan to expand India’s role as a regional production base. India is being developed as a manufacturing hub for neighbouring regions and adjacent markets.
As of now, we don’t know what the final entity will be called if the potential JV materialises. More details are expected to be shared in the coming months.
Dipan Sur
Viraaj Bhatnagar
