VW Group’s India strategy is led by Skoda.Volkswagen Group has revived discussions with Sajjan Jindal-led JSW Group for a potential joint venture in India, said people aware of the development. This comes as the European auto maker’s proposed alliance with Mahindra & Mahindra appears to have stalled. The two sides have held several meetings over the past three to four weeks to explore ties, said the people cited.
VW Group is home to brands such as Skoda, Audi, Porsche and Bentley. VW Group’s India strategy is led by Skoda.
Under the proposed terms, JSW would steer local operations through mobility arm JSW Auto while leveraging technology and product platforms from both VW and SAIC Motor, the Chinese parent of MG Motor India, with which the Jindals are already allied.
Discussions remain at an early stage, with the commercial structure yet to be finalised, the people said. JSW Group didn’t respond to queries. Local unit Skoda Auto VW India declined to make any specific comment.
VW Scouting for Local Partner
“To fully explore the country’s growth potential, we are always considering new business opportunities and are evaluating various options to ensure the best possible solution to implement our strategy in the highly dynamic Indian market,” it said in an email. “Although we do not comment on market speculation, we reaffirm our commitment to delivering innovative mobility solutions that meet the evolving needs of Indian consumers.” For VW Group, such a move would mark a significant step forward in the world’s third-largest auto market where it has been a marginal player despite a presence that stretches over two decades. Experts attribute this to its high cost structure and tough competition from Japanese, South Koreans and domestic manufacturers.
Volkswagen and SAIC already share a 50:50 joint venture in China, one of the most successful automotive collaborations in that market for over two decades. This existing relationship provides a natural foundation for a similar partnership in India, said one of the persons aware of the discussions.
At this stage, VW’s local unit is not involved in the discussions.
