JSW Group and Volkswagen Sign MoU to Form 51:49 Joint Venture

On September 9, 2026, JSW Group, led by Sajjan Jindal, signed a non-binding Memorandum of Understanding (MoU) with Volkswagen Group to advance their alliance plan for passenger vehicle operations in India. Under the agreement, the two parties will form a joint venture, with JSW Group holding a 51% stake and Volkswagen Group holding 49%. The MoU initiates exclusive negotiations on valuation and other details, with both sides aiming to reach a binding final agreement by the end of 2026. The proposed joint venture will operate through a new entity established between JSW and Škoda Auto Volkswagen India Private Limited (SAVWIPL), Volkswagen Group’s Indian subsidiary, and will be independent of Jindal’s existing partnerships. A spokesperson for SAVWIPL has confirmed the development. Volkswagen Group currently holds approximately 2.5% of the Indian market share. JSW Group stated it remains open to including other Volkswagen Group brands—such as Audi, Porsche, Lamborghini, and Bentley—in the alliance in the future. Initially, the joint venture’s scope will cover eight Škoda and Volkswagen models currently sold in India, along with future new models, including electric vehicles. One of the central issues in negotiations is Volkswagen Group’s potential tax liability in India, stemming from a customs duty dispute amounting to approximately ₹200 billion (roughly RMB 14.207 billion). Indian customs authorities allege that Volkswagen circumvented import duties of 30%–35% on fully built units by importing vehicles disassembled as “components” in separate shipments, thereby paying only 5%–15% in duties. This potential tax risk will be factored into the business valuation. SAVWIPL currently operates manufacturing facilities in Chakan and Aurangabad, with a combined annual production capacity of around 400,000 vehicles, and sells approximately 100,000 vehicles annually in India. Both parties are also exploring the possibility of using India as an export hub, particularly for electric vehicles.