Mahindra, Volkswagen sign agreement for MEB electric components in Chennai

19 May 2022 , 02:17 PM

Volkswagen and Mahindra & Mahindra Ltd. (M&M) are exploring the use of MEB electric components for Mahindra’s new “Born Electric Platform”.

Both parties announced today that they have signed a Partnering Agreement on 18th May to evaluate the scope of collaboration. Mahindra intends to equip its “Born Electric Platform” with MEB electric components such as electric motors, battery system components and battery cells. The Partnering Agreement evaluates the scope of collaboration — it indicates binding rules for the evaluation phase as well as the non-binding scope of supply.

The binding supply agreement will be negotiated in a continued constructive and legally compliant way to conclude by the end of 2022. Designed as an open vehicle platform, the MEB electric platform and its components allows car manufacturers to build their portfolio of electrified vehicles, quickly and cost-effectively.

The shared objective of the two companies is to electrify the Indian automotive market, one of the most important automotive growth markets and a key element in the global decarbonisation of the mobility sector.

Thomas Schmall, Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components, stated, “Mahindra is a pioneer in the electric mobility space in India and a great partner for our MEB Electric Platform. Together with Mahindra, we want to contribute significantly to the electrification of India, a huge automotive market with enormous growth potential and high relevance for climate protection.

It’s another proof point that the MEB is both technologically state of the art and highly competitive in terms of cost. The MEB is thus progressively developing into the leading open platform for e-mobility, generating significant volume and economies of scale. That’s crucial for every company in the EV world and the key to competitive solutions for our customers.”

Commenting on the partnership, Rajesh Jejurikar, Executive Director, Auto and Farm Sectors, Mahindra & Mahindra Ltd., stated: “We are very pleased to have Volkswagen, a significant global investor in the electric mobility space, as a strategic partner in achieving our ambitious Born Electric Vison.

The complementarity of their extensive technology, innovation, and vertical integration in supply chains, will provide a framework to develop our next gen “Born Electric Platform”, to be revealed soon in Oxfordshire UK. Our teams across India, UK and Detroit are passionately creating a breath-taking future.”

Mahindra & Mahindra was trading at Rs885.85 apiece down by Rs26.8 or 2.94% on the BSE, at around 2:24PM.