Mahindra and Volkswagen explore strategic alliance to accelerate electrification of Indian automotive market
The Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) intend to expand their cooperation. Both companies signed a Term Sheet on the supply of MEB electric components for Mahindra’s new, purpose-built electric platform INGLO, deepening the Partnering Agreement from earlier this year. (Earlier post.)
The cooperation intends to have a volume of more than one million units over lifetime and includes the equipment of five all-electric SUVs with MEB components. In addition, the two companies will explore further opportunities for collaboration, opening the perspective towards a broader strategic alliance to accelerate the electrification of the Indian automotive market.
Mahindra showcased its new electric SUV family at the Mahindra Born EV vision unveil event in Banbury, United Kingdom. (Earlier post.) The electric SUVs will be launched on the all new INGLO platform architecture and envisaged to be equipped with MEB components including the electric drivetrain, the battery system and Volkswagen’s unified cell.
The Term Sheet covers all major commercial and technical terms along with a path to the potential localization of the battery system. The final supply agreement will be negotiated in a continued constructive and legally compliant way by the end of 2022.
Regarding the next step towards a possible strategic alliance for India, both companies agree to explore further potential areas of collaboration in the field of e-mobility, including vehicle projects, the localization of battery cell manufacturing and charging and energy solutions for the electric ecosystem in India.
With around three million new vehicles per year, India is one of the five largest automobile markets in the world and along with China, the only region to record an increase in new registrations in the first half of 2022. The electrification of the passenger car segment is expected to gain significant momentum in the coming years.