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May 19, 2022 07:51 AM

VW, Mahindra explore partnership for EV components

VW, India's Mahindra explore partnership for EV components and expect to finalize deal this year.

Reuters
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    VW Mahindra sign agreement on EV components
    VOLKSWAGEN

    VW Group technology chief Thomas Schmall (sitting, right) and Rajesh Jejurikar, Mahindra's executive director for automotive business, shake hands after signing an agreement on EV components.

    NEW DELHI -- Volkswagen Group is exploring a partnership to supply electric components to Indian automaker Mahindra & Mahindra, the companies said.

    VW and Mahindra are evaluating the scope of the collaboration and expect to finalize the supply agreement before year-end, they said in a statement on Thursday.

    Mahindra is building a ground-up electric vehicle platform called "Born Electric," in which it plans to use components such as electric motors, battery system parts and battery cells sourced from VW.

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    The partnership comes at a time when Prime Minister Narendra Modi's administration is offering companies billions of dollars in incentives to build EVs and their parts locally, as India looks to meet its climate change and carbon reduction goals.

    "Together with Mahindra, we want to contribute significantly to the electrification of India," said Thomas Schmall, who is VW Group's board member for technology.

    VW has developed a modular, open vehicle platform for EVs, called MEB, which is used to build vehicles such as the VW ID3, Audi Q4 e-tron and Skoda Enyaq iV.

    This also allows VW to be a supplier of electric technology and parts to other automakers.

    Rajesh Jejurikar, executive director for the auto and farm sectors at Mahindra, said VW's "extensive technology, innovation, and vertical integration in supply chains" will provide a framework to develop Mahindra's EV platform, which the company will reveal soon.

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