Skoda Auto, JSW Group Sign Non-Binding MoU to Explore Strategic JV In India

Skoda Auto and JSW Group are exploring a new partnership that could bring their manufacturing and automotive capabilities under one structure in India, as per The CNBC TV 18 news report. The two sides have signed a non-binding MoU covering passenger vehicles. 

The proposed venture would work across the domestic and export markets and could include petrol and other ICE vehicles alongside electric, hybrid and plug-in hybrid models. 

Partnership Still at Discussion Stage 

The MoU does not create a final joint venture yet. JSW has said discussions are continuing, with further negotiations; internal approvals and regulatory clearances are still required. 

The ownership structure has also not been disclosed.  

Focus on Local Manufacturing and R&D 

As per the report, the proposed partnership would combine Skoda's engineering and product capabilities with JSW's manufacturing presence in India. Localisation and the development of manufacturing and R&D capacity are among the areas being considered. 

JSW's manufacturing assets are also being evaluated, including the upcoming Chhatrapati Sambhajinagar facility of JSW Motors. Higher localisation of models such as the Skoda Kodiaq is reportedly being assessed. 

India Could Become an Export Base 

Exports are another part of the proposed plan. Vehicles produced through the venture could be supplied to selected international markets, fitting with SAVWIPL's strategy of using India as a regional production base. 

SAVWIPL said the proposed joint-control structure would have defined responsibilities and mechanisms for quicker decisions. The company also pointed to localisation and platform synergies as ways to support scale, competitive products, and profitability. 

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Skoda and JSW Already Have Growing Auto Presence 

SAVWIPL's domestic volumes grew around 36% in 2025, while Skoda's India sales doubled, its best performance among its global markets. Despite that growth, Skoda has around 2% market share in India. 

For JSW, the proposed venture would add to its existing automotive interests, including JSW MG Motor, JSW Motors, and the electric bus business being developed by JSW Green Mobility. 

Read More: Auto Retail Sales Rise 18% in August 2026 to Record 2.42 Million Units, Says FADA! 

Conclusion 

The proposed Skoda-JSW venture remains at an early stage, with key terms yet to be finalised. If completed, it would bring manufacturing, localisation and export plans together while covering multiple powertrain technologies. 

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