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JSW-MG And Skoda-VW in early-stage partnership talks

November 22, 2025

JSW MG Motor India and Skoda Auto Volkswagen India (SAVWIPL) are in the early stages of exploring a strategic partnership that could involve sharing platforms, powertrains and future technologies. According to industry insiders, both companies have shown initial interest as automakers increasingly look toward shared architectures to reduce development costs, improve localisation and scale up hybrid and EV programmes.

Early Discussions, Not Negotiations Yet

Two industry executives confirmed that JSW-MG and Skoda-VW have exchanged early feelers to assess whether a technical or commercial alignment makes sense. These conversations are still exploratory, meant to evaluate long-term strategic fit rather than formal negotiations.

Why Skoda-VW Is Seeking a Partner

Skoda-VW has been scouting for an Indian partner for over a year, driven by the need for capital infusion, stronger localisation and support for its next-generation India platform. The Volkswagen Group is preparing to invest around €1 billion in a new India-focused architecture and needs scale to justify that investment.

JSW Group had previously been in talks with Skoda-VW for deeper cooperation, as earlier reported by Autocar India.

Possible Three-Way Partnership Structure

One scenario under consideration is a three-way structure involving JSW, SAIC (parent of MG), and Skoda-VW. SAIC and VW already have a long-standing, successful partnership in China, making technology exchange far more feasible.

Sources suggest SAIC is open to collaborative frameworks that can ensure long-term stability in India amid rising regulatory and geopolitical challenges.

JSW–Chery Talks Facing Challenges

This development comes as JSW Auto’s separate discussions with Chery are reportedly facing hurdles due to disagreements over data access and technology transfer. JSW Auto is building a new electric brand for a 2027–28 launch, based on Chery’s EV technology, but negotiations have been complicated.

A Potentially Unprecedented Alliance

If JSW–MG–SAIC and Skoda-VW come together under one multi-layered partnership, it could form one of the most unusual global alliances in India—combining European engineering, Chinese EV expertise and Indian market scale.
Such a collaboration could significantly reshape the competitive landscape for EV and hybrid development in the country.