Volkswagen Group may cede majority control of its India unit to a local partner to expand operations and scale in the market.
Volkswagen Group is nearing a memorandum of understanding with an Indian partner, potentially ceding majority control of its local operations. Skoda Auto CEO Klaus Zellmer stated the move aims to build scale in India, not address financial pressures, with a deal expected within weeks.
The company’s India 2.0 strategy has doubled sales over the past two years, though its passenger vehicle market share remains modest. Earlier talks with Mahindra collapsed, reviving discussions with JSW Group, which may form a separate unit for the venture.
Zellmer emphasized the partnership is part of a long-term plan, dismissing concerns over regulatory challenges or delays. No ownership structure details or partner identity were disclosed.