Volkswagen, JSW Group Near Deal for Majority Stake in India

Volkswagen Group is in advanced discussions with India's JSW Group to sell a majority stake in its Indian subsidiary, Skoda Auto Volkswagen India Pvt Ltd. The negotiations, ongoing for about three years, focus on the valuation of the unit and the amount of capital each side will commit. A deal would give JSW access to Volkswagen's vehicle platforms, engineering expertise and manufacturing capabilities, while providing Volkswagen with a strong local partner and additional capital amid declining sales – Skoda fell 1% YoY and Volkswagen fell nearly 10% YoY in Q2 2026.

The potential partnership reflects a broader shift in Volkswagen's two‑decade‑long India strategy, aiming to reduce financial burden and improve competitiveness in the fast‑growing market, as the automaker seeks to strengthen its presence alongside rivals such as Maruti Suzuki, Hyundai and Tata Motors.