Skoda Close to Finalising Indian Partner This Year, Says Klaus Zellmer

Skoda is expected to finalise its search for an Indian partner this year, according to Klaus Zellmer, the company's global CEO. Zellmer made the statement on the sidelines of the launch of the new Slavia in Mumbai.

This comes after reports that Skoda Auto Volkswagen India (SAVWPL) and the JSW Group are in the final stages of talks for a manufacturing joint venture. The two companies are likely to sign a non-binding memorandum of understanding within the next two months.

## What's in it for SAVWPL?

The partnership talks are not limited to manufacturing. Sales and marketing operations across the group's brands are also part of the discussions. This includes the premium brands such as Audi, Porsche, and Lamborghini, which have brought their sales operations under Skoda Auto Volkswagen India.

## India's growing importance within the VW Group

The Volkswagen Group is investing heavily in India, with plans to invest around 2 billion euros over the next decade. A large part of this investment is expected to be used for vehicles based on the India Main Platform (IMP), the group's EV platform for India. The IMP is derived from the China Main Platform (CMP), allowing the Volkswagen Group to adapt an existing EV platform to Indian regulations, local suppliers, and localisation needs.

| Platform | Investment | | --- | --- | | India Main Platform (IMP) | 2 billion euros | | China Main Platform (CMP) | - |

The IMP is expected to support several electric SUVs for Skoda and Volkswagen in the coming years. Higher localisation will be important to keep costs down and reduce reliance on imports.

## Skoda to develop more products locally

Skoda is already moving more development work to India and growing its local engineering team. Zellmer stated that the company is increasing its number of engineers in India "dramatically" as more future development projects are shifted to the country. The company is also planning to develop more models locally like the Kylaq, which has been a huge success in the Indian market.

The Kylaq is an important example of Skoda's India-focused product strategy. More than 45,000 units were sold in 2025, making it the biggest contributor to the group's domestic sales. When asked if Skoda plans to develop more models locally like the Kylaq, Zellmer said "Yes”, but did not share any details.

While talks for a partnership continue, Skoda is already taking steps to strengthen its local operations. Zellmer stated that the company is being careful with the partner talks as the decision will have a long-term impact on the business. Asked if majority ownership was important in the proposed partnership, he said, "It does. You need somebody to have a clear say." A deal this year would also provide clarity on how the Volkswagen Group plans to fund its next phase of growth in India, while giving Skoda and Volkswagen a stronger base for producing cars locally.