Volkswagen plans to introduce two locally assembled battery electric vehicles (EVs) in India within two years, The Economic Times (ET) reported citing Škoda Auto acting CEO Holger Peters.
The carmaker has delayed introducing EVs in India for more than two years and aims to improve operational profitability across its business by 2030.
The upcoming model rollouts form part of a proposed 51:49 alliance between Volkswagen Group and JSW Group that would reshape the German company’s Indian strategy.
The planned partnership would encompass component sourcing, vehicle manufacturing and rollouts, alongside the expansion of the dealer network.
Peters outlined the strategy during a recent virtual town hall for Škoda Auto Volkswagen India (SAVWIPL) staff, the newspaper reported.
He noted that the proposed alliance would permit the companies to increase investment, scale, and competitiveness at a faster pace.
The participating parties intend to complete the joint venture before mid-2027.
According to a worker cited by the publication, Peters said “We are very excited,” in reference to the partnership with JSW.
The envisaged alliance is intended to bolster Volkswagen Group’s standing in India by offering a broader portfolio of products, increased localisation, and expanded manufacturing as well as research and development capabilities.
A source cited by the ET indicated that SAVWIPL and JSW are examining how to deploy their existing sites to manufacture the scheduled electric models.
JSW has put forward the Chhatrapati Sambhajinagar facility in Maharashtra, owned by JSW Motors, as well as the JSW-MG Motor site in Halol, Gujarat, for assembling Škoda electric cars.
The source added that JSW Motors is likely to conduct contract manufacturing for Škoda and Volkswagen EVs using its existing site.
Last month, JSW Group entered commercial mobility through its commercial EV arm, JSW Greentech, which introduced a new brand called Ampstar.
That brand will oversee the design, manufacture, and sale of electric trucks and buses in India.
