Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) have solidified their collaboration by signing the first supply agreement for components related to Volkswagen's Modular Electric Drive Toolkit (MEB). This partnership will contribute to Mahindra's purpose-built electric platform, INGLO.
The agreement encompasses the supply of specific electric components and unified cells, with Mahindra being the inaugural external partner to adopt Volkswagen's innovative unified cell concept. This marks a significant step in both companies' efforts to expand their presence in the Indian electric vehicle market and drive the electrification movement in the region.
The collaboration between Volkswagen and Mahindra commenced in 2022 with a partnering agreement and term sheet. This recent supply agreement signifies a deepening of their strategic alliance, with ongoing evaluations for potential expansions in their collaboration.
Over the next several years, the supply agreement is expected to reach a total volume of about 50 gigawatt-hours (GWh). Mahindra, leveraging Volkswagen's MEB platform, aims to launch five all-electric SUVs in India starting from December 2024. Considering India's position as one of the world's largest automotive markets, with over five million new vehicles annually projected for 2023, both companies anticipate a substantial acceleration in the electrification of the passenger car segment in the coming years.
Volkswagen's MEB platform and components are not only utilized by its own brands such as Volkswagen, Audi, Skoda, and SEAT/CUPRA but are also employed by external partners like Ford and now Mahindra. This collaboration underscores the commitment of both companies to advancing electric mobility solutions and creating a sustainable footprint in the dynamic Indian automotive landscape.