Volkswagen Explores Partnership With JSW Group in India

By Dominic Chopping

Volkswagen and Indian conglomerate JSW Group are exploring a strategic partnership in India that could see the companies develop, manufacture and sell passenger vehicles.

As part of a nonbinding deal outlined Wednesday, they will discuss key terms of a collaboration that seeks to strengthen competitiveness in the country through a broader range of products, deeper supply-chain localization, and enhanced manufacturing and research and development capabilities.

"The idea is to bring together two complementary strengths," JSW said in a statement.

Skoda Auto Volkswagen India--Volkswagen's Indian subsidiary responsible for the Volkswagen, Skoda, Audi, Bentley, Lamborghini and Porsche brands in the country--would bring its engineering and product capability, with JSW bringing manufacturing scale, execution experience and a presence across steel, infrastructure, energy, cement, paints and automotive in India, it added.

JSW, which operates a sprawling group of businesses, is expanding its automobile division following the 2019 joint venture with China's SAIC Motor that sees the companies manufacture and sell MG-branded vehicles in India. A new partnership with China's Chery Automobile is expected to see the launch of passenger cars under a new standalone electric vehicle brand owned by JSW next year.

A potential deal with Volkswagen comes as automakers seek to tap into a growing consumer market and take advantage of the country as a manufacturing hub that can also serve as an export base.

Renault last year announced the acquisition of Nissan's 51% stake in Renault Nissan Automotive India Private, making it the sole owner of the Indian joint venture that produces Renault and Nissan cars and helping it speed development in the country as part of its plans to expand its international business.

Jeep-maker Stellantis earlier this year agreed to examine a deeper partnership with Tata Motors across manufacturing, engineering and supply-chain operations, and has pledged to continue investing in its Jeep brand in the country while targeting increased supply-chain localization, manufacturing capabilities and export opportunities.

Skoda Auto said Wednesday that India is one of the biggest drivers of its internationalization strategy, with the country quickly becoming a strong market and a strategic hub to unlock potential in neighboring regions and adjacent markets.

It saw domestic volumes in 2025 grow 36% on year and now wants to consider new opportunities for further growth in the country, it added.

Skoda Auto said the planned cooperation with JSW would be based on a two-party partnership structure with joint control, clearly defined roles, and a structure designed to support quick decision making.

"Deep localization and platform synergies are intended to support competitive product offerings, increased scale, and improved profitability in the Indian market," it said in a statement.

Volkswagen recently received approval for a landmark turnaround plan that will see the group intensify cost cuts as it grapples with tariffs, rising manufacturing costs and mounting competition from Chinese rivals.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 09, 2026 07:11 ET (11:11 GMT)