Skoda Auto and JSW Green Mobility have signed a non-binding Memorandum of Understanding (MoU) to explore setting up a strategic joint venture in India, marking a significant step in the two companies’ plans to expand their presence in the country’s passenger-vehicle market.
The proposed partnership would bring together Skoda Auto’s engineering and product capabilities with JSW Group’s manufacturing scale and experience in India. The venture is expected to focus on developing, manufacturing and selling passenger vehicles for both the Indian market and selected overseas markets.
Beyond EVs: Multiple powertrains in focus
Unlike partnerships focused exclusively on electric vehicles, the proposed venture would cover a broad range of powertrains, including internal-combustion engine (ICE) vehicles, electric vehicles (EVs), hybrids and plug-in hybrids. This indicates that the companies are considering a multi-powertrain product strategy as India’s passenger-vehicle market evolves.
The companies have also identified deeper localisation, expanded product offerings and stronger manufacturing and R&D capabilities as key areas of the proposed collaboration. Škoda has said that localisation and platform synergies are intended to support greater scale and competitiveness in the Indian market.
India as a potential export hub
The proposed venture would not be limited to domestic sales. Vehicles developed and manufactured under the partnership could also be supplied to international markets, supporting the broader objective of using India as a production and export base.
JSW has been expanding its automotive footprint in India. Its mobility businesses include JSW Green Mobility and JSW MG Motor India, while the group has also outlined significant investment ambitions around electric mobility and manufacturing infrastructure.
JV structure still under discussion
The MoU remains exploratory and non-binding, meaning it does not by itself create a final joint venture. The ownership structure, investment commitments, product plans and other commercial terms remain subject to further negotiations, internal approvals and regulatory clearances.
Earlier reports had indicated that a 51:49 structure with JSW as the majority partner was among the options being discussed, but the companies have not formally disclosed a final shareholding arrangement in the MoU announcement.
The proposed partnership comes as India’s automotive market undergoes a shift toward alternative powertrains. According to FADA data reported by Reuters, alternative-fuel passenger vehicles—including CNG, hybrids and EVs—accounted for nearly 42% of passenger-vehicle sales in August 2026, compared with about 41% for petrol vehicles.