The JV will also work for the development of conventional gasoline powered vehicles, but its major focus is to grow EV SUVs in India.
In an effort to grow the electric vehicle SUVs industry for international and Indian markets, a 50:50 joint venture (JV) has been decided to be formed between Skoda Auto Volkswagen India Private Limited (SAVWIPL) and Mahindra Auto. The JV will aim to share technology, costs, and vehicle platforms.
The association, which is now in the advanced stages, will also work to develop conventional gasoline-powered vehicles. Sources familiar with the discussion told the media that before 2025 starts, the JV would be officially announced. When the media reached out to both companies, they were sceptical about commenting further on the development and chose to refrain from quoting such speculation.
The premium brands of SAVWIPL, Porsche, and Audi won’t participate in the JV. Both brands are expected to commence production of the new models in Mahindra’s units in Pune. The speculative development surfaced after Skoda’s global CEO, Klaus Zellman, mentioned that tremendous progress has been made by forming an equity partnership with a worldwide Indian car brand. Thirty per cent of all car sales are targeted to be electric by the end of 2030.
Speaking of the EV development in India via JVs, giant Tesla is also expected to form a partnership with Reliance to set up its new manufacturing unit in the country. This development has yet to be finalized as the meeting between Musk and PM Modi has been rescheduled. On the other hand, China’s Leapmotor, in association with Europe’s Stellantis, is also willing to unveil its range of Evs in India. Due to geopolitical tussles, China’s EV makers faced considerable challenges in operating in India and the US. At the same time, SAIC’s MG Motor India partnership with JSW Group will invest in India’s domestic manufacturing and unveil plug-in hybrid and pure EVs.
The association between Mahindra and SAVWIPL began when they signed the first MOUs on the supply of components of Volkswagen’s MEB platform for Mahindra’s electric platform INGLO. Mahindra has also announced that it will invest Rs 12,000 crore in its EV business in the coming three years. Previously, Mahindra also wished to form an association with Ford, which ended before it could start. The partnership with Renault also took place for a very short time, ending in 2010. Therefore, experts are still predicting how long this new partnership with SAVWIPL will continue and benefit India’s EV industry.
