The agreement includes the provision of specific electric components and unified cells.
Volkswagen Group and Mahindra & Mahindra (M&M) have finalized the first supply agreement for components of Volkswagen’s MEB platform to be used in Mahindra’s purpose-built electric platform INGLO, marking a significant step forward in their joint vision for e-mobility collaboration. The agreement entails the provision of select electric components and unified cells, further strengthening the partnership initiated with a partnering agreement and term sheet in 2022. The companies are also considering the possibility of expanding their collaboration.
Mahindra will be the inaugural external partner to utilize Volkswagen’s innovative unified cell concept, a central element of its battery strategy. The supply agreement is set to span several years, with a total volume of approximately 50 GWh over its lifetime. Both Volkswagen Group and Mahindra aim to bolster their e-mobility presence in the Indian automotive market and expedite the region’s electrification process.
Mahindra is planning to introduce five all-electric SUVs in India, based on its new, purpose-built electric platform INGLO, starting December 2024. India, with over five million new vehicles per year in 2023, is one of the world’s largest automotive markets, and the electrification of the passenger car segment is expected to accelerate significantly in the coming years.
Volkswagen’s MEB platform and its components are utilized by Group brands such as Volkswagen, Audi, Škoda, and SEAT/CUPRA, as well as external partners like Ford and Mahindra. The partnership with Mahindra is managed by Volkswagen Group Technology and its “Platform Business” unit, in close collaboration with Škoda Auto Volkswagen India Pvt. Ltd.
Following the announcement, shares of Mahindra & Mahindra experienced a slight increase, trading with gains of 3 per cent as of 11:20 am. In comparison, the benchmark indices were also up, but to a lesser extent, showing an increase of 0.5 per cent. This indicates a positive market response to the news concerning Mahindra & Mahindra, as its shares outperformed the broader market indices during the same time period.
