Mahindra in Communication with Volkswagen To Utilize Key Components For EV

CIOTechOutlook Team | Tuesday, 05 September 2023, 06:48 IST

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The German automaker Volkswagen is in advanced negotiations with India's Mahindra & Mahindra to utilise major electric parts of the MEB open platform for electric vehicles. For its vehicles, Mahindra aims to employ central MEB elements such the e-drive and unit cells. Volkswagen has created the modular, open MEB platform, which is used to construct both its own vehicles as well as those of other group firms like Skoda and Audi. Volkswagen said that this enables it to serve as a provider of electric components and technologies to other automakers. 
 
Volkswagen and Mahindra inked a term sheet in August stipulating that the German automaker will provide Mahindra with electric components. According to Ludwig Fazel of Volkswagen Group Components, the automaker was also in discussions with other parties about similar agreements to incorporate Volkswagen technology, albeit they were not yet finalized. At the IAA Mobility Show in Munich, he was speaking.
 
He said, without going into greater detail, that some of these were Asian producers of combustion-engine vehicles who were thinking about working with Volkswagen to produce vehicles for the European market. According to Mahindra, its EV businesses would need to invest close to Rs 10,000 crore in capital between FY22 and FY27, the firm disclosed in its routine filings to stock markets. 4,000 crore rupees of this would be invested between FY22 and FY24, and the remaining amount will be till FY27.
 
Between April and October 2025, Mahindra, India's largest sports utility vehicle manufacturer by revenue, aims to introduce five new EV vehicles. The automaker anticipates that e-SUV penetration will reach 20–30% of its whole SUV lineup, or volumes of around 200,000 vehicles. To fulfill strict decarbonization objectives, auto companies in India are looking for outside finance to speed up product introductions and scale up EV sector capabilities.
 
According to Veejay Nakra, corporate president for the automotive sector, Mahindra anticipates its EV manufacturing would reach its peak production record of 2 lakh units annually between 2027 and 2029 at its forthcoming factory in Chakan, Maharashtra.
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