As part of the term sheet signed by both companies, Volkswagen will supply Mahindra Electric car parts from its MEB (Modular Electric Drive Matrix) platform.
Mahindra And Volkswagen Joining Forces
Basically, the said term sheet lists out the commercial and technical terms along with a possibility of local battery manufacturing.
It is noteworthy here that the actual agreement between the two companies is expected to be signed by the end of 2022.
The parts supplied by Volkswagen are expected to be utilized in more than a million Mahindra electric vehicles.
And why not, as the Bangalore based carmaker is planning to launch 5 new electric vehicles starting 2024.
Mahindra has already put together a new platform, INGLO for its new range of electric SUVs.
A New Strategic Alliance
Besides supplying Mahindra with parts from the MEB platform, Volkswagen is also working on a strategic alliance with the Indian utility vehicle giant.
This strategic alliance is likely to go much beyond parts supply.
Local manufacturing of battery cells, new vehicle projects, and charging and energy infrastructure development are some of the areas that Mahindra and Volkswagen are considering in this strategic alliance.
Interestingly, Mahindra already has a presence in India’s electric vehicle market.
On the other hand, Volkswagen has yet to introduce an electric vehicle here.
At the same time, Volkswagen is betting big on electric vehicles globally.
Also, it is tipped as one of Tesla’s most formidable rivals thanks to the MEB platform and the manufacturing depth that the German automaker has.
But one thing is sure that the union of Mahindra and Volkswagen in India could result in exciting new electric vehicles for buyers.
Significant Contribution Towards Electric Vehicle
“We are happy that we have identified a larger scope of collaboration between our two companies. Together, Volkswagen and Mahindra can contribute significantly to the electrification of India, a huge automotive market with ambitious climate protection commitments. The MEB Electric Platform and its components are key to affordable sustainable mobility around the globe. The partnership not only demonstrates that our platform business is highly competitive, but also that the MEB is well on track to become one of the leading open platforms for e-mobility. We are thus delivering on the focus of our Volkswagen NEW AUTO strategy to make the platform business a strong pillar of our Group and to unlock future profit pools through economies of scale,” the Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components, Thomas Schmall said in the backdrop of the term sheet signing.