JSW-MG Motor India and Skoda Auto Volkswagen India are exploring a potential partnership that could reshape India’s automotive landscape, according to people familiar with the matter. The early-stage discussions center on sharing platforms, powertrains, and investment as both companies navigate the challenges of electric vehicle development and rising costs.
Industry executives confirm that both parties have signaled interest in exploring strategic alignment, though they emphasize these are preliminary conversations rather than formal negotiations. The discussions aim to determine whether there is sufficient strategic fit to advance the partnership idea.
The timing of these exploratory talks is significant. Automakers across India are increasingly turning to shared vehicle architectures to manage high development costs, strengthen localization, and build the scale necessary for upcoming hybrid and electric programs.
Skoda-VW’s Search for Local Partnership
Skoda-VW has been actively seeking an Indian partner for over a year, driven by the group’s need for capital, local scale, and support for its next phase of product development. The German automaker is preparing to commit to an all-new India-focused platform strategy that requires an investment of approximately one billion euros.
Previous reports indicated that the Volkswagen Group had engaged with Mahindra and JSW Group to explore deeper cooperation for its India operations, making the current discussions a continuation of those earlier explorations.
Three-Way Collaboration on the Table
One scenario being examined at the exploratory level involves a three-way JSW–SAIC–Skoda-VW structure. This arrangement carries clear strategic logic: Skoda-VW and SAIC already have a long-standing partnership in China, which would make technology exchange and model sourcing more seamless.
People familiar with the discussions said SAIC is open to collaborative structures to secure its long-term presence in India, especially as regulatory and geopolitical pressures continue to mount.
JSW’s Separate Automotive Ambitions
The potential partnership takes on additional relevance given JSW’s broader automotive strategy. While building out its joint venture with MG Motor India, JSW is independently establishing JSW Auto, a separate entity aimed at launching its own electric car brand by 2027-28.
However, parallel discussions between JSW Auto and Chinese automaker Chery have faced difficulties over data access and technology transfer, highlighting the complexities Indian companies face when securing technology transfer rights from Chinese original equipment manufacturers.
If the JSW–MG–SAIC–Skoda-VW framework moves forward, it would represent one of the most unusual cross-continental collaborations in India’s automotive sector. The partnership would combine European engineering expertise, Chinese electrification capabilities, and Indian industrial scale and market access under one umbrella.
Such a structure could provide significant advantages as the Indian market transitions toward electrification and stricter emissions standards. The collaboration would give all parties access to shared development costs, broader product portfolios, and enhanced manufacturing scale.
For now, industry watchers are monitoring whether these early interactions will evolve into substantive negotiations. Both companies declined to comment on the discussions.