JSW In Talks For Majority Stake in Volkswagen's India Unit

JSW Group is in advanced talks to acquire a majority stake in Skoda Auto Volkswagen India, the India arm of the VW Group, according to a Bloomberg report. The JSW Group, which is led by Sajjan Jindalis pushing for majority ownership as Volkswagen looks to bring in fresh capital for its India operations, with both sides aiming to finalise an agreement in the coming weeks.

JSW and Volkswagen first opened talks three years ago, when the conversation centred on JSW potentially operating the German automaker's plants in Pune and Chhatrapati Sambhajinagar.

However, the latest talks between the two conglomerates are now over a majority stake in Skoda Auto Volkswagen India, which runs the VW group's Skoda and Volkswagen brands in the country alongside Audi, Porsche, Lamborghini and Bentley. Details about the terms are still unsettled, and the current round of talks still faces hurdles that could keep a deal from going through.

Skoda Auto chief executive Klaus Zellmer has previously said the brand would invest in India on its own if the search for a local partner did not succeed. However, with the VW Group itself looking to cut costs, its India unit need a local partner to help it continue onward in its journey in the subcontinent.

The Volkswagen Group recently scaled back planned investment in a new electric vehicle platform for India. The German automotive giant cut the outlay for the India EV project to around $700 million from its earlier commitment of $1 billion.

If the deal between the two conglomerates works out, it would mark JSW Group's second major move into India's passenger vehicle industry. The group acquired a 35 percent stake in MG Motor India from SAIC in 2023, and the resulting joint venture, JSW MG Motor India, began operations in 2024. JSW also has separate plans to launch its own-branded cars in the country and is said to be partnering with other Chinese automotive manufacturers for the same.

According to data from the Federation of Automobile Dealers Associations, Skoda Auto Volkswagen India held a 2.34 percent share of the country's passenger vehicle sales in FY2026, while JSW MG Motor India accounted for 1.40 percent. Kia India, which entered the market the same year as MG in 2019, held a 5.94 percent share for comparison.