Volkswagen Group Could Launch Two Made-in-India EVs by 2028

Volkswagen Group could launch two locally assembled electric cars in India by 2028 through its proposed partnership with JSW Group. The German automotive giant is exploring the use of existing JSW manufacturing facilities to bring electric vehicles under its Skoda and Volkswagen brands to the Indian market.

The proposed partnership could help Volkswagen Group accelerate its electric vehicle plans after earlier delays. It could also reduce the need to establish separate manufacturing facilities, with local assembly and increased component sourcing expected to play an important role.

The two companies are discussing a potential 51:49 joint venture, under which JSW Group could hold a majority stake in Volkswagen Group’s Indian operations.

Volkswagen Group Plans Two Locally Assembled EVs

The proposed joint venture could pave the way for two locally assembled electric cars in India within the next two years. The vehicles are expected to strengthen the electric vehicle portfolios of Skoda and Volkswagen, although their names, specifications and launch dates have not been announced.

Local assembly could help Volkswagen Group manage production costs and make its upcoming EVs more competitive in the Indian market. It would also provide the company with an opportunity to expand its electric vehicle range without having to establish an entirely new production setup. However, the proposed launches remain subject to the final agreement between Volkswagen Group and JSW Group.

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JSW Plants in Gujarat and Maharashtra Under Consideration

According to a report, the companies are considering two existing manufacturing facilities for the proposed electric cars. One option is JSW's facility at Chhatrapati Sambhajinagar in Maharashtra. The other is the JSW MG Motor India plant at Halol in Gujarat.

JSW Motors could undertake contract manufacturing at either location. Using existing facilities could help the companies reduce the time and investment required to begin local EV production. The final manufacturing location has not yet been confirmed.

JSW Could Acquire 51% Stake in Volkswagen's India Business

The proposed partnership could give JSW Group a 51 per cent stake in Volkswagen Group's Indian operations, while Volkswagen would retain the remaining 49 per cent. The two companies signed a non-binding Memorandum of Understanding in September 2026 and entered exclusive negotiations. According to the reported timeline, the joint venture agreement could be finalised before mid-2027.

The discussions cover ownership, investment, manufacturing arrangements and future vehicle launches. The final structure will depend on the outcome of negotiations, and the deal has not yet been completed.

More Localisation and New Models Planned

The proposed partnership could extend beyond the two electric cars. Volkswagen Group and JSW are also exploring greater localisation, local research and development, procurement and the introduction of additional models.

Volkswagen Group has identified 2030 as a target for improving profitability in India. Increasing production volumes and sourcing more components locally could support this goal. Access to JSW's manufacturing infrastructure could also help Skoda and Volkswagen expand their product offerings in the country.

Dealership Expansion Also on the Agenda

The companies are reportedly discussing dealership expansion alongside plans for additional vehicle launches. A broader retail network could help Skoda and Volkswagen reach more customers as they expand their product portfolios. However, details about the number of new dealerships and the markets targeted for expansion have not been disclosed.

The proposed partnership was also discussed with employees during a virtual meeting in late September. The discussions reportedly covered investment opportunities, production capacity and the potential benefits of the collaboration. Employees also raised questions about job security and the future of existing manufacturing operations.

Volkswagen Group's India EV Strategy Could Get a Boost

The proposed JSW partnership could give Volkswagen Group a new route to expand its electric vehicle business in India. Local assembly at an existing facility could help the company avoid the cost and time involved in setting up a separate manufacturing operation. If the agreement moves forward as planned, the two locally assembled EVs could strengthen the Skoda and Volkswagen line-ups by 2028. For now, the vehicle details, production site and launch schedule remain unconfirmed. The next major step will be the finalisation of the proposed joint venture and its manufacturing plans.