diff --git a/src/ostbuild/pyostbuild/vcs.py b/src/ostbuild/pyostbuild/vcs.py
index cbb6b0e7..00d936d0 100755
--- a/src/ostbuild/pyostbuild/vcs.py
+++ b/src/ostbuild/pyostbuild/vcs.py
@@ -63,7 +63,7 @@ def get_vcs_checkout(mirrordir, keytype, uri, dest, branch, overwrite=True):
     run_sync(['git', 'submodule', 'init'], cwd=tmp_dest)
     have_submodules = _fixup_submodule_references(mirrordir, tmp_dest)
     if have_submodules:
-        run_sync(['git', 'submodule', 'update'])
+        run_sync(['git', 'submodule', 'update'], cwd=tmp_dest)
     os.rename(tmp_dest, dest)
     return dest