Skoda Auto a.s. and JSW Green Mobility Limited have signed a non-binding Memorandum of Understanding (MoU) to explore a strategic joint venture in India. The proposed partnership aims to combine Skoda’s engineering and product expertise with JSW Group’s manufacturing capabilities and scale.
Joint Venture to Cover Multiple Powertrains
If finalised, the proposed JV would develop, manufacture and sell passenger vehicles for India as well as international export markets.
The partnership could cover:
- Internal combustion engine (ICE) vehicles
- Electric vehicles (EVs)
- Plug-in hybrids
- Hybrid vehicles
- Development and manufacturing for export markets
Both companies are currently in the early stages of discussions, with the final structure, ownership and commercial terms yet to be agreed upon.
Focus on Localisation and New Products
The proposed venture is expected to focus strongly on higher localisation, product expansion and manufacturing efficiencies. The companies also intend to strengthen research and development capabilities in India.
The potential partnership could also support Volkswagen Group’s proposed India Main Platform (IMP) for electric vehicles, derived from its China Main Platform and adapted for Indian requirements.
JSW Expands Its Automotive Ambitions
If completed, the partnership could become the third automotive vertical of JSW Group, alongside JSW-MG Motor and JSW Motors.
Manufacturing assets within the JSW Group, including the upcoming facility at Chhatrapati Sambhajinagar, could potentially play a role in the proposed collaboration.
India Could Become an Export Hub
The proposed JV also aligns with Volkswagen Group’s strategy to strengthen India as a regional manufacturing and export base.
However, the MoU remains exploratory and non-binding. Any definitive agreement will depend on further negotiations, internal approvals and regulatory clearances.
