Mahindra Signs Supply Agreement with Volkswagen for EV-Related Components

Mahindra is expecting 20 to 30 percent of its sales to come from electric vehicles by 2027.

Published On: 16/02/24
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Mahindra and the German auto giant are aiming to strengthen their electric mobility footprint in India.
Volkswagen said that this supply agreement was the first of its type for the company.

Mahindra & Mahindra Ltd. (M&M) and Volkswagen Group announced on Friday that the brands have recently finalized a supply agreement. Under this collaboration, Mahindra's EV platform, INGLO, will utilize the EV components and unified cells of Volkswagen’s MEB (modular electric drive matrix). The automakers said in a joint statement that the partnership covers the supply of a few electric components and unified cells.

Mahindra is planning to use VK Group’s unified battery cell and EV components for its own platform. The company will then become the first external partner to make use of the unified cell concept, which is a new technology manufactured by Volkswagen. The German carmaker is planning to use 80 percent of its battery cells and claims that it will reduce the price by half.

Volkswagen stated that the agreement would go on for several years and that it would have a complete volume of about 50-gigawatt hours (GWh) over its lifetime. Mahindra and the German auto giant are aiming to strengthen their electric mobility footprint in India and accelerate electrification in the region.

Mahindra is expecting 20 to 30 percent of its sales to come from electric vehicles by 2027. After manufacturers like MG Motor India and Tata Motors, Mahindra is the third-largest electric manufacturer in the Indian automotive market. The company is also planning to launch five all-electric sports utility vehicles in the country, and they will be based on the purpose-built electric platform INGLO. Mahindra is also eyeing launching an EV version of its famous off-roader Thar model available in India.

The German carmaker Volkswagen has developed a modular, open EV platform named MEB. The manufacturer builds its electric model on the same platform. Other companies, like Audi and Skoda, also utilize the same platform. This allows the auto giant to work as a supplier of electric technology and components to other car makers.

Volkswagen said that this supply agreement was the first of its type for the company. However, the manufacturer said last year that it was conversing with other automakers about this deal. The manufacturer plans to offer this deal to manufacturers who sell vehicles with combustion engines in Asia and who are planning to manufacture cars for the European market through Volkswagen’s collaboration.