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Skoda Volkswagen In Talks With JSW Group For India Production Partnership
Skoda-Volkswagen India is in advanced discussions with the JSW Group for a potential equity partnership aimed at supporting its next phase of operations in the country, claims a new report by Autocar Professional.
The collaboration between Skoda Volkswagen India (the Indian arm of the VW Group) and JSW is expected to focus on developing a new range of SUVs under the upcoming CMP21 platform, which will support internal combustion, hybrid, and electric powertrains.
The CMP21 architecture is designed as a replacement for Volkswagen's earlier MQB A0 37 platform, which was considered too costly and inflexible for Indian market conditions. The total investment in the new programme is estimated at over €1 billion, which has prompted Volkswagen to seek a local partner to share financial and operational responsibilities.
Previous discussions with Mahindra & Mahindra did not move forward due to differing strategic goals and valuation disagreements. However, JSW Group has emerged as a strong contender, largely because of its growing presence in the mobility space and its existing partnership with MG Motor India through the JSW-MG joint venture.
Under the proposed framework, JSW would manage domestic operations through its automotive arm, JSW Auto, while Volkswagen would provide the vehicle platforms and core technologies. The venture could potentially build on synergies with SAIC Motor, which is already aligned with JSW through the MG brand in India.
Although neither company has confirmed financial terms, both sides are believed to have held multiple meetings in recent weeks to advance discussions. Volkswagen officials have stated only that the brand continues to evaluate options to execute its India strategy efficiently, while JSW has declined to comment publicly.
While talks with JSW have not yet been finalised, development work on the CMP21 platform is already underway to maintain project timelines. The new Skoda-VW India SUV range based on this platform is expected to debut by mid-2027, marking a major step in Skoda-VW's strategy to expand its portfolio and localise production in India.
Volkswagen's search for a domestic ally reflects a broader trend among global automakers seeking Indian partners to share investment risks and gain stronger footholds in the world's third-largest car market. Local partnerships are increasingly viewed as vital to navigating India's complex regulatory, manufacturing, and consumer environment.
If concluded, the Skoda-Volkswagen and JSW partnership could represent one of the most significant strategic realignments in India's passenger vehicle industry - shifting VW from an independent operator toward a partnership-driven model designed for scale, localisation, and long-term competitiveness.
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