Mahindra & Volkswagen in talks for EV component collaboration

06 Sep 2023 CW Team

According to a report, Mahindra & Mahindra is currently engaged in discussions with Volkswagen regarding the utilisation of key electric components from Volkswagen's open electric vehicle platform, known as the modular electric drive matrix (MEB). This collaboration would involve Mahindra incorporating components such as the e-drive and unit cells into its own electric vehicle lineup.

Volkswagen's MEB platform serves as a versatile foundation for electric vehicles and is utilised by various brands, including Audi, Cupra, Skoda, and Volkswagen, as well as in partnership with Ford.

It was reported that M&M and Volkswagen had inked a term sheet back in August, outlining the provision of electric components by the German automaker to Mahindra.

As per Mahindra's financial plans, as reported by the Economic Times, an investment of approximately Rs 100 billion is anticipated for its electric vehicle subsidiaries from the financial year 2021-22 (FY22) through FY27. Within this period, Rs 40 billion of the total investment will be allocated between FY22 and FY24.

Furthermore, Mahindra has ambitious plans to introduce approximately five new electric vehicle models between April and October 2025. The company aims for electric SUVs to account for 20-30 per cent of its SUV portfolio, potentially reaching up to 200,000 SUV units.

In addition to these initiatives, Mahindra has set a target to manufacture 200,000 electric vehicles annually at its Chakan plant in Maharashtra from 2027 to 2029.

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