Mahindra and Mahindra has just inked a supply pact with German car giant Volkswagen Group, whereby the later will supply certain components for the homegrown sports utility vehicle maker's purpose built INGLO electric vehicle platform.
"Volkswagen Group and M&M have signed the first supply agreement on components of Volkswagen's MEB (modular electric drive system) for Mahindra's purpose-built electric platform INGLO, taking a definitive step further on their joint vision for e-mobility collaboration. The deal covers the supply of certain electric components as well as unified cells," the two companies said on Friday.
It was back in August 2022 that the two companies had signed a term sheet on the supply of MEB electric components for Mahindra's EV platform INGLO.
With Friday's supply agreement, Volkswagen and M&M are deepening their partnership and the companies said that they will continue to evaluate a potential expansion of the collaboration.
Mahindra, currently has only one electric model in its portfolio - the XUV400. It has plans to launch five all-electric SUVs in India based on the INGLO platform, starting December 2024.
The MEB platform and its components are currently used by Volkswagen and its various group companies like Audi, Skoda and SEAT. Mahindra will be the first external partner to use the unified cell concept, the core element of Volkswagen's battery strategy.
"The supply agreement will run over several years and will have total volume of about 50 GWh over lifetime," the companies said.
Volkswagen and Mahindra aim to strengthen their e-mobility footprint in the Indian automotive market and to accelerate the electrification in the region, they added.
Electric vehicle sales in India are growing fast in India. But, passenger electric vehicles still account for a small pie.
According to CareEdge Ratings, 1.53 million electric vehicles were sold in the country in 2023, a 50 per cent jump over 2022. However, two-wheelers accounted for 56 per cent of the sales, followed by three-wheelers, which made up 38 per cent. Passenger vehicles accounted for only 5 per cent of the total EV sales last year. Mahindra's homegrown rival Tata Motors currently has more than 70 per cent share in the passenger EV market.
Tata Motors had announced in November 2023 that its EV arm Tata Passenger Electric Mobility had signed a memorandum of understanding with British luxury unit Jaguar Land Rover for licensing the later's electrified modular architecture platform for the development of Tata's premium EV series Avinya.
