​​Skoda-VW in talks with JSW for functioning jointly in India

New Delhi: Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) has entered into discussions with the JSW Group for a strategic equity partnership that aims to fund and develop their next-generation SUV portfolio based on the CMP21 platform. If it goes through, the Skoda-VW’s growth prospects in India would see a massive surge, with JSW’s financial and industrial power, and VW’s technology. 

The Volkswagen Group’s Indian subsidiary has abandoned the expensive MQB A0 37 platform to adopt the more versatile CMP21 architecture, which is projected to support multiple internal combustion, hybrid, and electric SUVs. However, the project’s estimated investment exceeding Euro 1 billion, VW Group have made it clear that Skoda-VW India will bring in a local equity partner to share the financial stress and gain project approval.

Discussions were held with Mahindra & Mahindra some time ago, who were viewed as a logical partner due to their automotive pedigree. However, the talks didn’t go through due to divergent strategic priorities and valuation disagreements. JSW Groups has been in the automotive world and is quite ambitious for its growth. In fact, it is an equity partner in JSW-MG India, and they are now looking at strong prospects for the Skoda-VW entity.

At the Munich Mobility Show, Klaus Zellmer, global CEO of Škoda Auto, spoke to Autocar Professional and noted that partnerships are crucial for business to align well with the cultural side.

While preparations on the CMP21 platform continue despite the pending greenlight, to avoid delays for the planned mid-2027 launch. A successful tie-up with JSW would be crucial to revitalise Skoda-VW’s ambitions amidst India’s ever-growing and evolving auto market. 

This also highlights how international carmakers are becoming increasingly dependent on strategic local partnerships to navigate market complexities and capture growth in the Indian market, which is the third-largest in the world.