JSW Green Mobility and Skoda-VW Ink Non-Binding MoU

JSW Group and Skoda Auto Volkswagen India have signed a non-binding MoU to explore a 51:49 joint venture for passenger vehicles in India as stated in multiple media reports. JSW is proposed to hold a 51 percent stake in the new entity, with Volkswagen Group retaining 49 percent. The two companies will now hold exclusive discussions on valuation, transaction structure and other commercial terms.

The reports also outline that a definitive agreement is expected to be put in place by the end of 2026; subject to due diligence, internal approvals and regulatory clearances. The proposed partnership is expected to cover vehicle development, manufacturing and sales, with products using ICE, hybrid, plug-in hybrid and electric powertrains being considered.

Reports suggest that under the proposed structure, JSW Group will hold the majority stake in the joint venture. Volkswagen Group will retain a 49 per cent share.

The MoU is non-binding, however, and the final structure could depend on the outcome of the ongoing negotiations. The partners are yet to disclose the proposed valuation or investment amount.

The transaction would bring together JSW’s manufacturing and business presence in India with Volkswagen Group’s automotive technology and existing local operations.

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The proposed JV is not being positioned as an electric vehicle-only partnership. The companies are looking at internal combustion engine, hybrid, plug-in hybrid and electric vehicles for the Indian and export markets. This could allow the partners to share platforms, technology, manufacturing resources and development costs across multiple vehicle programmes. Details of the first products to be developed under the proposed JV have not been revealed.

Skoda Auto Volkswagen India already has manufacturing operations in Maharashtra, including its facility in Chakan. The company produces models for both Skoda and Volkswagen in India.

The proposed partnership could make greater use of the existing manufacturing infrastructure while increasing localisation and production volumes. India is also expected to play a role as an export base, with the proposed JV looking at supplying vehicles to selected international markets.

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For JSW, the proposed partnership would provide access to Volkswagen Group’s vehicle platforms, engineering expertise and global automotive ecosystem. Volkswagen Group, meanwhile, would gain a majority Indian partner with experience in manufacturing and the domestic automotive market. Skoda Auto Volkswagen India has already developed India-specific products under the MQB-A0-IN architecture. The platform currently underpins models including the Skoda Kushaq and Slavia and Volkswagen Taigun and Virtus.