Skoda and Mahindra are expected to sign an agreement for a new partnership soon. Key leaders from both companies will meet in Mumbai in the coming days to talk about making cars together in India.

M&M are scheduled to meet over the next few days," one of the persons said. The talks are progressing well, the person said, noting that both sides are likely to dwell on product, vehicle platform strategy and factories that would be utilised by the new JV Company.

Sedans and SUVs that Volkswagen and Skoda currently sell in the Indian market, as well as luxury brands Audi, Porsche and Lamborghini, won't be part of the JV, the person said.

On August 30, ET reported that Mahindra & Mahindra and Volkswagen Group's Indian subsidiary are close to forming a joint venture. This partnership will help them share costs, technology, and car platforms for developing new products together.