Volkswagen AG is nearing a deal to secure a local partner for its Indian operations. The company is open to relinquishing majority control to expand its footprint. Skoda Auto CEO Klaus Zellmer expects a memorandum of understanding within weeks. A final agreement is anticipated by the end of 2024.
India represents the world's third-largest car market. Volkswagen maintains a market share of less than 2% in the region. The automaker has operated in the country for over two decades. Reports suggest JSW Group is in advanced negotiations for the partnership.
The deal aims to mitigate investment risks through a shared financial structure. Volkswagen intends to leverage local expertise to accelerate growth in the fast-growing market.