Skoda and JSW Green Mobility sign non-binding MoU

Skoda Auto a.s. (international) and JSW Green Mobility Limited, part of the JSW Group, have signed a non-binding Memorandum of Understanding to explore setting up a strategic joint venture in India. The proposed venture seeks to combine the Czech carmaker’s engineering and product capabilities with JSW Group’s manufacturing scale in India. The JV would look at developing, manufacturing and selling passenger vehicles for both the Indian market and for exports across a range of powertrains, including internal combustion engine, electric, plug-in hybrid and hybrid.

“At this stage, the MoU is exploratory and non-binding. The two companies are in early discussions, and there is no definitive agreement yet. Any firm arrangement would follow further negotiation, internal approvals and the necessary regulatory clearances,” a JSW spokesperson informed us. If the joint venture materialises, it could become the third vertical of JSW Group’s automotive business, after JSW-MG Motor and JSW Motors.

Proposed venture to have joint control

The latest collaboration will focus on expanding the product portfolio, deepening localisation, and strengthening manufacturing and research and development capabilities in India. Interestingly, the inclusion of internal combustion engines suggests that the talks cover a wider product and manufacturing arrangement, rather than just electric vehicles.

As we had reported earlier, the potential investment from JSW could also fund products based on the India Main Platform (IMP), Volkswagen Group’s EV architecture for India. The IMP is derived from the China Main Platform, allowing the group to use an existing EV architecture and adapt it to Indian regulations, the local supplier base and localisation requirements.

The companies have also been evaluating the use of manufacturing assets across the JSW Group. This includes the JSW Motors’ upcoming facility at Chhatrapati Sambhajinagar, where higher localisation of products such as the Skoda Kodiaq is being assessed. In fact, localisation of the next-generation Kodiaq platform is also under evaluation. If cleared, it could support a locally manufactured three-row SUV to compete with the likes of the Mahindra XUV 7XO. Localising the platform would allow the companies to compete in one of the country’s fast-growing SUV segments with significantly higher local content. However, either of the companies have not officially confirmed these product plans. 

Speaking of exports, the proposed venture would develop and manufacture vehicles for certain international markets alongside its domestic operations, supporting Volkswagen Group’s plan to expand India’s role as a regional production base. India is being developed as a manufacturing hub for neighbouring regions and adjacent markets.

As of now, we don’t know what the final entity will be called if the potential JV materialises. More details are expected to be shared in the coming months.