Volkswagen Group is open to giving up majority control of its Indian operations to a local partner as it nears an alliance set to expand its presence in India.
Skoda Auto CEO Klaus Zellmer told the Economic Times that the company is “within weeks” of signing a memorandum of understanding (MoU) with a potential Indian partner, adding that relinquishing majority ownership “is not an issue.”
He did not name the prospective partner or disclose details of the proposed ownership structure.
Skoda Auto leads Volkswagen Group's India strategy through Skoda Auto Volkswagen India (SAVWIPL).
Earlier reports indicated that JSW Group was in advanced talks with SAVWIPL, with plans to form a third JSW unit for the venture, separate from the group's existing auto businesses, JSW MG Motor India and JSW Motors.
Discussions with JSW were revived last year after talks with Mahindra for a potential joint venture fell through.
He said the proposed partnership is aimed at building greater scale in India rather than addressing any immediate financial or operational pressure.
“We're not desperate. We have a solid plan for India, standalone with a partner,” he said, when asked whether the openness to cede majority control was driven by upcoming safety and emissions regulations in India, or by delays in finalising a joint venture with a local partner.
Skoda Auto has more than doubled its India sales over the past two years under its India 2.0 strategy.
Its share of the Indian passenger vehicle market remains below 2%.
Zellmer said the company expects the market to grow 8-10% in FY27. The signing of the MoU with an Indian partner is expected within weeks.
Skoda Auto has separately announced its return to the diesel segment in India after a five-year gap, unveiling its premium executive sedan, the all-new Superb.
It also unveiled its updated Slavia, built on the locally developed MQB-A0-IN platform and produced in India, and announced the return of the Octavia RS.
Alongside the Kylaq and Kushaq SUVs, the Slavia forms part of Skoda Auto's “made in India, for India” model portfolio and is also exported to markets including Vietnam, the Middle East and Africa.
