JSW Group and Škoda Auto Volkswagen India Sign MoU to Explore Passenger Vehicle Joint Venture

Key facts

• JSW Group and Škoda Auto Volkswagen India Pvt Ltd (SAVWIPL) signed a non-binding Memorandum of Understanding (MoU) on September 9, 2026, to explore a strategic joint venture for developing, manufacturing and selling passenger vehicles in India and for exports.
• The proposed joint venture would cover internal combustion engine (ICE), electric vehicle (EV), plug-in hybrid and hybrid powertrains, with Škoda Auto bringing global engineering, technology and product expertise.
• No definitive agreement, shareholding structure or regulatory clearance has been finalised, as the MoU is exploratory and non-binding.
• In 2025, SAVWIPL recorded about 36% year-on-year growth in domestic volumes, while Škoda doubled its sales in India, its strongest growth across all Škoda markets.
• JSW Group owns 35% of JSW MG Motor India, while China's SAIC Motor owns 49%; JSW is also expanding through JSW Motors with a partnership with Chinese automaker Chery, Jetour EVs planned later this fiscal year, and JSW Green Mobility entering the electric bus market.
• Škoda Auto, which entered India in 2001, holds about 2% of India's passenger vehicle market, compared with about 6% for Kia India, which entered in 2019.
• SAVWIPL plans to cut 12% of its workforce, while Volkswagen Group globally plans to cut as many as 100,000 jobs and close four factories in Germany amid competition from Chinese carmakers.
• Volkswagen Group faces a $1.4 billion customs tax demand in India over alleged misclassification of certain Audi, Volkswagen and Škoda vehicle imports, which SAVWIPL is contesting.