M&M signs agreement with Volkswagen for electric components

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Mahindra & Mahindra (M&M) today said it plans to to equip its Born Electric Platform with MEB electric components such as electric motors, battery system components and battery cells from Volkswagen.

Both parties have signed an agreement to evaluate the scope of collaboration, and a binding supply contract could be forged by the end of 2022. MEB electric platform and its components allow car manufacturers to build their portfolio of electrified vehicles, quickly and cost-effectively.

"Together with Mahindra, we want to contribute significantly to the electrification of India, a huge automotive market with enormous growth potential and high relevance for climate protection, said Thomas Schmall, Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components.

Stating that MEB is both technologically state-of-the-art and highly competitive in terms of cost, he said it is progressively developing into the leading open platform for e-mobility, generating significant volume and economies of scale.

That's crucial for every company in the EV world and the key to competitive solutions for our customers, Schmall added. India is one of the global top five automotive markets with about three million vehicles per year, M&M said.

The market is expected to grow to 5 million vehicles by 2030, it said, adding so far, the market has been dominated by vehicles with diesel or petrol engines. Industry experts anticipate that in 2030 more than half of all new vehicles will be fully electric, as per the release.

The complementarity of their extensive technology, innovation, and vertical integration in supply chains, will provide a framework to develop our next gen Born Electric Platform, to be revealed soon in Oxfordshire UK," said Rajesh Jejurikar, Executive Director, Auto and Farm Sectors, M&M.

At present, Volkswagen's MEB electric platform is used by the group brands Volkswagen, Audi, Skoda and SEAT/CUPRA as well as external partners.