Volkswagen Group will launch two locally assembled battery EVs in India within two years under a proposed 51:49 joint venture with JSW Group, according to Škoda Auto acting CEO Holger Peters.

The two BEV rollouts anchor a broader alliance that would span component sourcing, vehicle manufacturing, dealer network expansion and R&D, Peters told staff during a recent virtual town hall for Škoda Auto Volkswagen India (SAVWIPL), The Economic Times reported.

Why is Volkswagen turning to JSW now?

Volkswagen has postponed its Indian EV introduction for more than two years. The German group needs the partnership to accelerate investment, scale and competitiveness in a market where standalone operations have struggled. Peters said: "We are very excited" about working with JSW, according to a worker who attended the town hall.

The deal would let the carmaker share capital costs, deepen localisation and reach a wider product portfolio than its existing India business can support alone. The parties have set two milestones: completion of the joint venture before mid-2027 and improved operational profitability across Volkswagen's business by 2030.

What does the partnership cover?

The proposed alliance between Volkswagen Group and JSW Group is structured around four workstreams:

• Component sourcing, including local supply chain build-out
• Vehicle manufacturing at existing Indian plants
• Rollout of the two BEVs and any follow-on models
• Expansion of the dealer network across India

Under the 51:49 split, JSW would hold the larger equity share.

Where will the EVs be assembled?

JSW has put forward two existing facilities as candidate assembly sites for the planned Škoda electric models:

• The Chhatrapati Sambhajinagar plant in Maharashtra, owned by JSW Motors
• The JSW-MG Motor site in Halol, Gujarat

A source cited by The Economic Times said SAVWIPL and JSW are examining how to deploy these sites to manufacture the scheduled electric models. JSW Motors is likely to conduct contract manufacturing for both Škoda and Volkswagen EVs, the source added.

How does this fit JSW's wider EV strategy?

The passenger-car alliance extends JSW Group's automotive push beyond commercial vehicles. Last month, the conglomerate entered the commercial EV market through JSW Greentech, launching the Ampstar brand to design, manufacture and sell electric trucks and buses in India.

The Volkswagen tie-up gives JSW a passenger-vehicle partnership and a foreign technology backer, while giving Volkswagen the local manufacturing footprint and capital it has lacked in the Indian market.

What to watch

• The joint venture closing: parties have set a target of mid-2027
• Site selection: whether Chhatrapati Sambhajinagar, Halol or both will host EV assembly
• First-launch timing: both BEVs are scheduled for introduction within two years
• The profitability milestone: whether the alliance helps Volkswagen reach its 2030 operational profitability goal
• Model identity: which two nameplates from the Volkswagen and Škoda line-ups will lead the rollout