Volkswagen-JSW Reset — Two Made-in-India EVs Within Two Years

Volkswagen Finally Commits to India EVs

For more than two years Volkswagen Group held back on launching electric cars in India, waiting for the right cost base. That wait now looks over. Weeks after signing a non-binding memorandum of understanding with the Sajjan Jindal-led JSW Group, the company is preparing a broad overhaul of its India strategy covering sourcing, production, launches and dealer expansion.

Skoda Auto acting CEO Holger Peters told employees of Skoda Auto Volkswagen India at a virtual town hall in late September that the partnership would accelerate scale and competitiveness, and that the German group was approaching India with renewed confidence. The two sides are targeting a completed joint venture before mid-2027.

What the Two Electric Cars Could Be

The headline plan is two locally assembled battery-electric vehicles within two years. Talks are reportedly on about where to build them, and JSW has offered its existing factories — the JSW Motors plant at Chhatrapati Sambhajinagar and the JSW-MG Motor plant at Halol — for the assembly of Skoda-built electric cars. The logic is simple: why build an EV line at Skoda's own facilities when a partner's plants are already running.

The 51:49 alliance is aimed at deeper localisation and stronger manufacturing and research capability, with the group targeting better profitability across its operations by 2030. JSW will bring the investment and scale, while the group brings platforms and engineering.

What This Means for You

Volkswagen and Skoda have long sold well-engineered cars in India without the localisation to price them aggressively. If the JSW tie-up delivers, the near-term gain for buyers is cheaper running of the existing line-up and, more importantly, a genuine German-engineered electric car assembled here — which is the only way the group can compete on price with Tata and Mahindra EVs. Nothing is confirmed yet, and the deal could still change shape. You can compare current Volkswagen and Skoda models on our comparison tool and track monthly volumes on our sales page.

(Sources: Skoda Auto Volkswagen India town hall reported by the Economic Times, 7 October 2026. Images: Volkswagen Virtus, CC BY-SA 4.0; Skoda Slavia, CC BY 3.0 via Wikimedia Commons.)