Mahindra, Škoda VW may team up to build electric SUVs using Volkswagen’s MEB platform

The MEB platform, developed by the Volkswagen Group, is a flexible base designed specifically for electric cars

Mahindra & Mahindra Ltd (M&M) is set to announce a major partnership with Škoda Auto Volkswagen India Pvt Ltd (SAVWIPL) to develop electric vehicles (EVs), people familiar with the matter said. The joint venture, details of which are expected in November, will initially focus on developing electric sport utility vehicles (e-SUVs), leveraging Volkswagen’s modular electric drive (MEB) platform.

The platform, developed by the Volkswagen Group, is a flexible base designed specifically for electric cars. It has been used for several popular EV models worldwide, including the Volkswagen ID.4, Audi Q4 e-tron, and the Škoda Enyaq iV. This platform helps carmakers build different electric vehicles using the same core technology, keeping costs down and speeding up production.

A person familiar with the project said the Mahindra-Škoda VW joint venture will develop three to four electric SUV models. “These vehicles will be badge-engineered, meaning the same car will be sold under different brand names, similar to how Toyota and Maruti Suzuki share models in the SUV segment,” the person said. “Three of these electric SUVs will be sold under the Volkswagen brand, while Mahindra will market the others with its own branding.”

Earlier this year, Volkswagen and Mahindra signed an agreement for Mahindra to use components from the MEB platform for its own electric vehicles. This partnership expands that deal, with both the companies now working more closely on producing electric SUVs for India and beyond.

Pricing and Market Reach

The first electric vehicle from this partnership is expected to be priced around Rs 25 lakh, making it competitive in India’s growing EV market. “These electric SUVs will not only be sold in India but could also be exported to other countries,” another person shared. However, the collaboration is focused entirely on electric vehicles, with no plans to work on traditional petrol or diesel-powered cars.

While M&M and SAVWIL declined to comment on the JV, both have hinted at it. In a statement to the Bombay Stock Exchange (BSE) on September 23, M&M said, “Mahindra and Volkswagen Group are exploring multiple opportunities to expand collaboration.”

Škoda Auto Volkswagen India spokesperson, without confirming the development, mentioned, “To fully explore the country’s growth potential, we are always considering new business opportunities and are evaluating various options to ensure the best possible solution to implement our strategy in the highly dynamic Indian market, adding, “Volkswagen Group and Mahindra continue to explore multiple opportunities to expand the collaboration potential.”

Global Success Story

The MEB platform has been successful globally and by using this platform, the proposed Mahindra-Škoda VW JV will be able to introduce advanced electric vehicles to the Indian market quickly and at competitive prices, the sources said.

Industry experts believe that this partnership could have a significant impact on India’s EV market. Puneet Gupta, director at S&P Global Mobility, told Moneycontrol: “With Volkswagen’s advanced technology and Mahindra’s strong supplier network, this partnership is in a great position to deliver cost-effective electric vehicles.” He also said that the combined marketing channels of both companies would help them reach more customers and reduce production costs.

Gupta pointed out that this partnership comes as India pushes for more EV adoption through initiatives like the FAME scheme, which aims to make the vehicles more accessible. “As the government continues to promote electric vehicles, this JV has the potential to be a major player in the market,” he added.

Opportunities and Challenges

While India’s EV market is still developing, domestic companies like Tata Motors have set up a strong presence. However, a Mahindra-Škoda VW venture could shake things up, given Mahindra’s deep understanding of the Indian market and Volkswagen’s EV technology. The partnership could offer strong products both locally and internationally, experts said.

In addition to targeting Indian buyers, the JV may also consider exporting these electric SUVs to other countries, said the people said.