Bloomberg reported Oct. 24 that Volkswagen has paused new spending on an India electric-vehicle project while seeking a clearer path for a possible tie-up with JSW Group, citing people familiar with the discussions. Neither company has publicly confirmed the reported pause.
Under a Sept. 9 nonbinding memorandum of understanding, JSW Green Mobility Limited and Škoda Auto a.s. are exploring a passenger-vehicle venture for India and export markets. The proposed scope includes internal-combustion, electric, plug-in hybrid and hybrid vehicles, extending beyond the EV project at the center of Bloomberg’s report.
For the EV plan to compete on price, Volkswagen would need to source more components in India and expand local production, Bloomberg reported. The outlet said design work is complete for a project using a lower-cost EV architecture developed initially for China. Bloomberg’s reading of national registration data put September’s Indian electric passenger-vehicle total above 35,000, almost twice the level a year earlier.
A JSW Group spokesperson told Autocar India that the talks were at an early stage and that “there is no definitive agreement yet.” The spokesperson said a deal would depend on further discussions, internal approvals and regulatory clearances. A Škoda Auto Volkswagen India spokesperson told The Economic Times that the proposed cooperation aims to broaden its product range and strengthen localization, manufacturing and research and development.
In a separate Sept. 24 report, Bloomberg said JSW wanted Volkswagen to cover a $1.4 billion Indian tax liability, citing people familiar with the talks.
The Economic Times reported, citing people familiar with the negotiations, that the companies were targeting a binding agreement by the end of 2026. Their public statements do not confirm that timetable or identify an EV model, investment amount or launch date.
