Skoda Auto, JSW sign MoU to explore PV joint venture
NEW DELHI: Skoda Auto and JSW Green Mobility have signed a non-binding agreement to explore a joint venture that could develop, manufacture and sell passenger vehicles in India and overseas, the companies announced on Wednesday. The proposed partnership will span internal combustion engine vehicles, electric vehicles, plug-in hybrids and hybrids, signalling that the discussions extend beyond an electric mobility alliance.“At this stage, the MoU is exploratory and non-binding. The two companies are in early discussions, and there is no definitive agreement yet,” a JSW Group spokesperson said. Any binding arrangement will require further negotiations, internal approvals and regulatory clearances, the spokesperson added. The companies did not disclose the proposed investment, shareholding structure or timelines for concluding the negotiations.Skoda Auto, which leads Volkswagen Group’s operations in India, said the proposed two-party partnership would have joint control, with clearly defined responsibilities and mechanisms for faster decision-making.The collaboration is expected to focus on widening the product portfolio, increasing localisation and strengthening manufacturing and research and development capabilities in India. Platform synergies and deeper localisation are also expected to help the companies offer more competitively priced vehicles, build scale and improve profitability. “To fully explore the country’s growth potential, we are always considering new business opportunities,” the spokesperson said.
