Volkswagen explores partnership with JSW Group in key India market

Volkswagen is considering a tie-up with the Indian conglomerate JSW Group, a move meant to sharpen its competitiveness and profitability there. A company spokesperson confirmed the plan on Wednesday, according to Business Recorder, saying the aim is to widen Volkswagen's portfolio in the country, source more locally and strengthen manufacturing. The discussions come as the German carmaker has found it difficult to grow in India, a market central to its push beyond Europe.

JSW entered the passenger vehicle segment in 2023 via JSW MG Motor India, a venture formed with China's SAIC Motor that markets MG cars. Under the plan being discussed, the tie-up would involve two parties sharing joint control, set operating roles and governance steps aimed at quicker decisions. The companies would also look at boosting local sourcing, sharing vehicle platforms and adding production capacity.

Skoda Auto leads the group's operations in India, and Volkswagen's market share there is still about 2% after more than two decades. The company is also contesting a $1.4 billion tax demand that Indian authorities raised in 2024 over alleged import tax evasion, and the court has yet to issue an order. Investor pressure to speed up cost cuts persists as Chinese automakers expand in Europe, with tariff pressures and a slowdown in China adding to the strain.