The Volkswagen Group and Indian automaker Mahindra and Mahindra are in exploratory talks over EVs in India.
The potential deal would help Mahindra accelerate its plans to electrify.
While for VW, the company would get access to localized parts from India and a potential partner to develop a platform for the region.
As per sources close to the talks, the VW group could potentially supply parts for up to 1 million vehicles.
The part deal would go until the end of the decade.
As part of the talks, Mahindra signed a term sheet to source parts from the VW Group.
In addition, the term sheet noted the two companies would explore a potential joint platform for India and emerging markets for the VW Group.
Executive Director of Mahindra, Rajesh Jejurikar, said this about the talks:
A commitment of a billion dollars, a new brand, a grounds up platform, and now partnering with a global major like Volkswagen Group to fix the back end allows us to take on potential opportunities not only in India but world over. It shows the rapid strides Mahindra is making in the EV space and we are confident of replicating our recent success in iconic brands into the EV space.
While Thomas Schmall, Member of the Board of Management for VW, said this:
There are multiple areas of discussion we are in with Mahindra. One is developing a joint platform, cell localization and supply of parts. We are also in discussion to use aggregates from the Mahindra’s Inglo platform.
If the deal is to go through, Mahindra will use the Modular electric drive matrix (MEB) of VW for their ‘Born Electric Platform’.
This includes the electric motors, battery system components and even the battery cells.
The MEB currently powers the ID.3, ID.4, ID.5 and ID.6.