Volkswagen And Skoda Eye Investments In India

Volkswagen and Skoda have signed a preliminary agreement with Indian conglomerate JSW to explore building cars in India, part of a bigger push by Volkswagen to find new markets after sales in China have dropped off sharply. Under the tentative deal, JSW would hold 51 percent of the joint venture and Volkswagen 49 percent, meaning the Indian partner would have the final say on decisions. Volkswagen has tried and failed to gain a foothold in India before, partnering unsuccessfully with Suzuki, Tata, and Mahindra over the years.

Skoda, which recently pulled out of China, sees India as its next big opportunity. The company doubled its India sales in 2025, and combined Volkswagen and Skoda sales there rose 36 percent to 117,000 vehicles, all gasoline-powered. If the JSW deal goes through, it could help fund electric vehicles based on Volkswagen's planned "India Main Platform," with electric models targeted for 2028. JSW already builds vehicles with Chinese automaker SAIC and plans its own electric car brand using technology from another Chinese manufacturer, Chery.

For homeowners, this is mainly a story about where global automakers are placing their bets, not a change that affects electric vehicle choices or charging options here yet. India lacks much of the charging infrastructure and purchase incentives that helped electric vehicles take off in China, and the country's government has been noncommittal about incentives for buyers. Any electric Volkswagen or Skoda models coming out of this partnership would be built for the Indian market, not for import to the United States or Europe.