NEW DELHI – Volkswagen is exploring a partnership to supply electrical components to Indian automakers Mahindra and Mahindra, the company said Thursday.
Volkswagen and Mahindra are evaluating the scope of the collaboration and hope to finalize a 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 parts and battery cells sourced from Volkswagen.
The partnership comes at a time when Prime Minister Narendra Modi’s government is offering companies billions of dollars in incentives to build EVs and parts 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 Schmall, chief executive of Volkswagen Group Components.
Volkswagen has developed a modular open vehicle platform for EVs, called MEB, which it uses to build its own cars and that of other group companies including Skoda and Audi. It also allows Volkswagen to become a supplier of electrical technology and parts to other automakers.
Rajesh Jejurikar, executive director for the automotive and agricultural sector at Mahindra, said Volkswagen’s “extensive technology, innovation and vertical integration in the supply chain” will provide the framework for developing the Mahindra EV platform that the company will reveal soon.
(Reporting by Aditi Shah; Editing by Kim Coghill)