Volkswagen, JSW restart talks for new India joint venture

Volkswagen remains a minor player in the Indian auto market.

Volkswagen Group has reopened discussions with the Sajjan Jindal-led JSW Group for a potential automotive joint venture in India, according to a report by The Economic Times. The move follows a reported pause in the German automaker's alliance talks with Mahindra & Mahindra.

The two groups have held several meetings in recent weeks to explore a partnership, though talks remain preliminary and the commercial structure has yet to be finalised. JSW Group did not respond to queries, while Skoda Auto Volkswagen India declined to comment.

Under the proposal, JSW would manage local operations through its mobility arm, JSW Auto, and leverage technology and product platforms from both Volkswagen and SAIC Motor, the Chinese parent of MG Motor India, with which JSW already has a partnership.

In an emailed response, Volkswagen said, "To fully explore the country's growth potential, we are always considering new business opportunities and are evaluating various options to ensure the best possible solution to implement our strategy in the highly dynamic Indian market." The company added, "Although we do not comment on market speculation, we reaffirm our commitment to delivering innovative mobility solutions that meet the evolving needs of Indian consumers."

Despite being present in India for over two decades, Volkswagen remains a minor player in the world’s third-largest auto market. Industry experts attribute this to its high cost structure and strong competition from Japanese, Korean and domestic manufacturers.