JSW Group and Volkswagen Sign Non-Binding MOU to Explore Strategic Partnership in Indian Passenger Vehicle Market
JSW Group has signed a non-binding Memorandum of Understanding (MoU) with Škoda Auto Volkswagen India Pvt Ltd, part of the Volkswagen Group, to explore forming a strategic partnership for passenger vehicle operations in India. The proposed alliance aims to enhance competitiveness through expanded product offerings, deeper localisation, and improved manufacturing and R&D capabilities. Both parties plan to establish a new joint venture covering existing Skoda and Volkswagen models sold in India as well as future launches including electric vehicles. The MoU outlines a two-party partnership structure with shared control and clear decision-making mechanisms. Škoda Auto reported strong growth, noting that its sales doubled in 2025 while the group recorded ~36% year-over-year domestic volume growth. However, potential challenges include Volkswagen's alleged customs duty circumvention involving models like Skoda Kodiaq and Superb, which could result in a tax liability of up to $2.1 billion. The proposed partnership is separate from JSW’s existing ventures such as its collaboration with SAIC Motor. The two companies aim for a final binding agreement by the end of 2026.
