Skoda Auto Volkswagen India is in talks with JSW Group for a strategic equity partnership to support the development of next-generation petrol, hybrid, and electric SUVs on the CMP21 platform, with plans to launch by mid-2027 amidst broader shifts in Indian automotive collaborations.
Skoda Auto Volkswagen India is in talks with JSW Group over a strategic equity tie-up that could help fund its next generation of sport utility vehicles, according to Autocar Professional and Autocar India. The proposed plan centres on the CMP21 platform, which is intended to support petrol, hybrid and electric models, and replaces an earlier platform strategy that the company has shelved. The move comes as the Volkswagen Group’s Indian arm seeks a local partner to help shoulder an investment programme that is said to exceed €1 billion.
The search for backing follows the collapse of earlier discussions with Mahindra & Mahindra, which reportedly foundered over valuation and strategic differences, including sourcing and development costs. Autocar Professional quoted Skoda Auto chief executive Klaus Zellmer as saying partnerships remain an important option and that “The train has not left the station yet.” Preparatory work on CMP21 is still under way, with the company aiming to avoid any slippage to a planned mid-2027 launch.
JSW has emerged as the favoured candidate as the group expands its footprint in Indian automotive manufacturing. Economic Times has reported that JSW wants a standalone venture to oversee the Volkswagen alliance in India, with a majority economic interest and leadership role. Separately, electrive said the talks may also be linked to local electric vehicle production. The discussions reflect a broader shift among global carmakers in India, where partnerships with domestic groups are increasingly seen as a way to spread risk and navigate a market that is now the world’s third largest.
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