Mint Explainer: Will Volkswagen be third time lucky with an Indian partner?

Volkswagen Group has signed a non-binding memorandum of understanding (MoU) with JSW Group to explore a potential joint venture in India. The German automotive group is undertaking a major global restructuring that its board approved last week. A joint venture would allow Volkswagen to pare costs while gaining access to JSW’s domestic execution capabilities. After hearing arguments from both sides, the court said last month that an order could not be passed and the matter would be reheard later. Volkswagen Group’s performance in India has remained underwhelming despite the country rising to become the world’s third-largest passenger vehicle market. 3% at the end of FY26. However, driven by the recent success of Kylaq, Škoda’s compact SUV, retail sales surged 30% in FY26 to 110,070 units. The Sajjan Jindal-led conglomerate is rapidly building out its presence across the automotive supply chain. Both of JSW’s current passenger vehicle ventures rely heavily on Chinese automakers and are focused primarily on electric and hybrid platforms. Nothing will change immediately, as both sides have only signed a non-binding MoU. While the companies expect to complete formal negotiations by the end of the year, discussions could stretch longer, given the complexity of the deal. Though exact details of the joint venture's structure remain undisclosed, industry observers expect the brand's existing road presence in India to remain largely unchanged once operations begin.