JSW Group is in advanced talks to acquire a stake in Skoda Auto Volkswagen India, with the proposed deal potentially giving the Sajjan Jindal-led conglomerate a majority holding in Volkswagen AG’s India business, according to a Bloomberg report.
- Terms of the deal are yet to be finalised
- Skoda Auto Volkswagen India held 2.34 percent market share in FY2026
- JSW already owns 35 percent of JSW MG Motor India
The report says the proposed investment would bring fresh capital into Skoda Auto Volkswagen India, which oversees the group’s Skoda, Volkswagen, Audi, alongside luxury and super-luxury marques like Porsche, Lamborghini, and Bentley brands in the country. Both sides are aiming to reach an agreement in the coming weeks, although the terms are not settled and a transaction may not follow, the report said.
Volkswagen declines to comment
A Volkswagen spokesperson did not confirm the discussions, saying only that the company regularly evaluates opportunities to support its strategy in India’s passenger vehicle market. Bloomberg added that the terms of the proposed transaction are still being negotiated and may change before any agreement is reached.
What the deal could mean
If completed, the deal would mark JSW Group’s second major investment in India’s passenger vehicle industry after acquiring a 35 percent stake in MG Motor India from SAIC in 2023. The joint venture, JSW MG Motor India, began operations in 2024.
For Volkswagen, the investment could strengthen its position in India, where Skoda Auto Volkswagen India accounted for 2.34 percent of passenger vehicle sales in FY2026, according to FADA data. By comparison, Kia India held a 5.94 percent share, while JSW MG Motor India accounted for 1.40 percent. The additional investment could also support the group’s future product and business plans in the country.
India remains a focus market for Volkswagen
India has become an increasingly important market for Volkswagen as it reshapes its global operations. According to the Bloomberg report, the company is looking to strengthen its presence outside Europe following its withdrawal from Russia and its planned exit from China.
With inputs from Dhruv Dhaka