M-;M and Volkswagen in talks for collaboration in EVs

16 Aug 2022 , 09:33 AM

Mahindra & Mahindra, a leading Indian SUV manufacturer, has opened an exploratory dialogue with Volkswagen Group, the largest automaker in Europe, to lead the electric vehicles movement in India and expand it to international markets, according to a report by ET.

This would hasten the company’s goal of selling two lakh electric vehicles by 2027, which could potentially result in income for EV, its subsidiary, of roughly Rs50,000 crore, while VW might benefit from localization of parts to lower costs in India. With access to the most recent VW technologies, M&M should be able to deploy its own Born Electric vehicles more quickly and for less money.

Until the end of the decade, the VW Group might be able to supply parts for 1 million vehicles, according to a senior board member from the German Automotive Group.

Alongside this, Mahindra & Mahindra inked a term contract with Volkswagen Group to source parts for these electric cars, and it said that it will be looking into the possibility of developing a joint platform with the VW Group for India and emerging markets.

Mahindra announced two new brands – the iconic XUV with the Twin Peak emblem in Copper and the brand-new electric-only BE – that were designed expressly to house the company’s EV portfolio. The EVs sold under the BE brand will be built on Inglo’s original EV architecture; previous models will bear the XUV label.

In order to introduce an electric crossover using this platform starting in 2023 and another one later, with a combined capacity of 1.2 million units over the course of a six-year period, VW and Ford have already worked together.

Following the $9 billion fund infusion announcement for its EV subsidiary, M&M provided guidance for earmarked investments of Rs2000 crore in FY23 for EVCo and another Rs8000 crore over FY24 to FY27 related to EV platform, products, technologies, and EV exclusive manufacturing assets, among other things.