Mahindra & Mahindra Nears Deal with Volkswagen for Key Electric Components

4 Sep 2023 , 03:11 PM

Mahindra & Mahindra, an Indian automaker, is in advanced talks with Volkswagen to utilize key electric components from Volkswagen’s open electric vehicle platform, MEB. The components in question include the e-drive and unit cells, according to a statement from Volkswagen.

Volkswagen’s MEB platform is modular and open, designed for electric vehicles and used by the company itself as well as its group companies like Skoda and Audi. This collaboration allows Volkswagen to supply electric technology and parts to other automakers.

In August, Volkswagen and Mahindra signed a term sheet outlining the German carmaker’s supply of electric components to Mahindra. Mahindra has disclosed a capital expenditure plan of nearly Rs 10,000 crore for its EV subsidiaries between FY22 and FY27, with Rs 4,000 crore allocated between FY22 and FY24.

India’s largest sports utility vehicle maker intends to launch five new EV models from April to October 2025, targeting e-SUV penetration of 20-30% within its SUV portfolio, totaling around 200,000 units. Indian auto companies are seeking external funding to accelerate EV product launches and capacity expansion to meet stringent decarbonization objectives.

Mahindra anticipates reaching a peak EV production of 2 lakh units annually between 2027 and 2029 at its upcoming Chakan plant in Maharashtra, according to Veejay Nakra, President – Automotive Sector at Mahindra.

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