Fresh off signing a non-binding Memorandum of Understanding (MoU) with the JSW Group in September 2026 to explore a massive joint venture, Skoda Auto Volkswagen India Private Limited (SAVWIPL) has now engaged directly with the Indian government. The high-profile discussions focused strictly on electric vehicle (EV) production scaling, export optimizations, and deep domestic localization.
Union Minister for Commerce and Industry Piyush Goyal met with a high-level corporate delegation led by Piyush Arora, Managing Director and CEO of Škoda Auto Volkswagen India, on November 9, 2026.
EV Manufacturing and Exports Discussed
The meeting covered several areas related to the future of the Indian automobile industry. According to the minister’s office, both sides discussed ways to increase vehicle exports and strengthen India’s position as an international manufacturing base.
Electric vehicle manufacturing was also an important part of the discussion. The government and the company explored opportunities to increase domestic production and develop a stronger supply chain for the automobile sector.
The discussions included:
- EV production: Expanding electric vehicle manufacturing activities in India.
- Automobile exports: Increasing the number of vehicles exported to international markets.
- Localisation: Encouraging the use of more locally sourced components.
- Technology: Supporting innovation and improving manufacturing capabilities.
- Global supply chains: Increasing India’s participation in international automobile production networks.
Greater localisation can help manufacturers reduce their dependence on imported components. It can also create more opportunities for Indian suppliers and component manufacturers.
JSW and Volkswagen’s Proposed Joint Venture
The discussions also come at a time when Volkswagen is exploring a major partnership with JSW Group.
The two companies signed a non-binding MoU in September 2026 for a proposed 51:49 joint venture involving JSW Group and Skoda Auto Volkswagen India. The agreement allows both sides to begin discussions on valuations and other details before reaching a final arrangement.
The proposed partnership is separate from JSW’s existing joint venture with China’s SAIC Motor.
The partnership could bring together Volkswagen’s automotive engineering experience and JSW’s manufacturing capabilities. It is also expected to cover existing passenger vehicle brands and future products, including electric vehicles, subject to the final agreement.
| Particulars | Details |
|---|---|
| Companies | JSW Group and Volkswagen Group |
| Indian entity | Skoda Auto Volkswagen India |
| Proposed shareholding | 51:49 |
| Agreement | Non-binding MoU |
| Signed | September 2026 |
| Business | Passenger vehicle operations |
Skoda Volkswagen’s Growing India Network
SAVWIPL has also been expanding its presence across the country. In October 2026, Skoda Auto India crossed 350 customer touchpoints across 193 cities and 29 states and union territories.
The network includes 270 sales touchpoints, 203 after-sales touchpoints and 79 dealer partners. The company had 191 touchpoints in 2021, which increased to 325 in 2025.
It also opened 58 showrooms across 38 new cities and 45 workshops in 34 new locations between January 2025 and October 2026.
What Lies Ahead?
The latest meeting highlights the areas where the government and Volkswagen see opportunities for cooperation. With the proposed JSW partnership under discussion, stronger localisation and more EV production could become important parts of the group’s future India plans.
For now, the joint venture is still at the discussion stage, and no final details have been announced. Further developments will clarify how the partnership and the company’s manufacturing plans take shape.