NEW DELHI – Volkswagen is looking for a partnership to supply electrical components to Indian automaker Mahindra and Mahindra, the companies said on Thursday.
Volkswagen and Mahindra are evaluating the scope of cooperation and hope to finalize the supply agreement by the end of 2022, they said.
Mahindra is building a ground-up electric vehicle (EV) platform called “Born Electric”, where it plans to use components such as electric motors, battery system components and battery cells derived from Volkswagen.
The partnership comes at a time when Prime Minister Narendra Modi’s administration is incentivizing companies to build billions of dollars to build EVs and their components locally as India seeks to meet its climate change and carbon reduction goals.
“Together with Mahindra, we want to make a significant contribution to India’s electrification,” said Thomas Shyamal, CEO of Volkswagen Group Components.
Volkswagen has created a modular, open-vehicle platform for EVs, called MEB, which is used to build its own cars and cars from other group companies, including Skoda and Audi. This allows Volkswagen to be a supplier of electrical technology and parts to other automakers.
Rajesh Jejurikar, Executive Director, Mahindra’s Auto and Farm Sector, said Volkswagen’s “extensive technology, innovation, and vertical integration into the supply chain” would provide a framework for developing Mahindra’s EV platform, which the company will soon unveil.
(Reporting by Aditi Shah; Editing by Kim Kogil)