JSW Group could acquire majority stake in Volkswagen’s India business

JSW Group is in advanced talks to acquire a stake in Skoda Auto Volkswagen India Pvt Ltd, with the proposed deal potentially giving the Sajjan Jindal-led conglomerate a majority holding in Volkswagen AG’s India business, according to a Bloomberg report.

1. Terms of the deal are yet to be finalised
2. Skoda Auto Volkswagen India held 2.34 percent market share in FY2026
3. JSW already owns 35 percent of JSW MG Motor India

The report says the proposed investment would bring fresh capital into Skoda Auto Volkswagen India, which oversees the group’s Skoda and Volkswagen brands alongside luxury and super-luxury marques such as Audi, Porsche, Lamborghini and Bentley in the country. Both sides are aiming to reach an agreement in the coming weeks, although the terms are not settled and a transaction may not follow, the report said.

Volkswagen declines to comment

A Volkswagen spokesperson did not confirm the discussions, saying only that the company regularly evaluates opportunities to support its strategy in India’s passenger vehicle market.

What the deal could mean

If completed, the deal would mark JSW Group’s second major investment in India’s passenger vehicle industry following its acquisition of a 35 percent stake in MG Motor India from SAIC in 2023. The joint venture, JSW MG Motor India, began operations in 2024.

As for the Volkswagen Group, the investment could strengthen its position in India and support its future product and business plans here. According to data from the Federation of Automobile Dealers Associations, the share of Skoda Auto Volkswagen India in the country’s passenger vehicle sales in FY2026 was 2.34 percent while that of JSW MG Motor India was 1.40 percent. In comparison, Kia, which, like MG, entered India in 2019, held a 5.94 percent share.

India remains a focus market for Volkswagen 

India has become an increasingly important market for Volkswagen as it reshapes its global operations. According to the Bloomberg report, the company is looking to strengthen its presence outside Europe following its withdrawal from Russia and its planned exit from China.

With inputs from Dhruv Dhaka