Mahindra & Volkswagen's cooperation agreement for EVs

The common goal of the two companies is the electrification of the Indian automotive market, one of the most important automotive growth markets and a key element for the global decarbonization of the mobility sector.

Mahindra & Volkswagen's cooperation agreement for EVs

New Delhi: Volkswagen and Mahindra & Mahindra Ltd. (M&M) are exploring the use of MEB components in Mahindra's new "Born Electric Platform". Both sides announced today that they signed a cooperation agreement the day before to evaluate the scope of cooperation.

Mahindra wants to equip its "Born Electric Platform" with MEB components such as electric motors, battery system components, and battery cells. The cooperation agreement sets the framework for the further evaluation of the cooperation - it contains binding rules for the evaluation phase as well as the non-binding scope of delivery. A binding supply agreement is to be drawn up in a constructive and legally compliant manner by the end of 2022.

The common goal of the two companies is the electrification of the Indian automotive market, one of the most important automotive growth markets and a key element for the global decarbonization of the mobility sector.

Designed as an open vehicle platform, the MEB and its components enable car manufacturers to quickly and economically electrify their model range.

Thomas Schmall, Volkswagen Group Board Member for Technology and CEO of Volkswagen Group Components: "Mahindra is an electric pioneer in India and a strong partner for our MEB electric platform. Together with Mahindra, we want to make a significant contribution to the electrification of India, a huge automotive market with enormous growth potential and of great importance for climate protection. It is further proof that the MEB is both technologically and economically fully competitive. It is increasingly developing into the leading open platform for e-mobility and achieves significant volume and economies of scale. In the world of E-mobility is of central importance for every company and the key to competitive solutions for our customers."

Rajesh Jejurikar, Executive Director, Auto and Farm Sectors, Mahindra & Mahindra Ltd., commented on the partnership as follows: "We are very pleased to have gained a significant global investor in the field of electric mobility in Volkswagen, who will choose us as a strategic partner in the Our deep expertise in technology, innovation and vertical supply chain integration complements our capabilities and provides the framework for the development of our next-generation Born Electric Platform, which we will soon launch in Oxfordshire, UK , will introduce. Our teams in India, UK and Detroit are passionate about an amazing future."

With around three million new vehicles per year, India is one of the five largest automotive markets in the world. According to current forecasts, the market could grow to up to five million vehicles by 2030. So far, the market has been dominated by vehicles with diesel or petrol engines. However, at the UN climate summit in Glasgow in 2021, India committed itself to only allowing emission-free new vehicles from 2035. The electrification of the passenger car segment should therefore gain significant momentum in the coming years. Industry experts assume that by 2030 more than half of all new vehicles will be pure electric cars.

The MEB electric platform is already being used by the Group brands Volkswagen, Audi, ŠKODA and SEAT/CUPRA as well as by external partners. Responsibility for these partnerships lies with the newly created business unit “Platform Business”.