Volkswagen has just announced a partnership with Indian SUV manufacturer Mahindra & Mahindra. This collaboration aims to provide electrical components for Mahindra electric vehicles.

This is the first contract to supply Volkswagen MEB electric vehicle platform components for Mahindra’s purpose-built INGLO electric platform.

India, the new El Dorado for manufacturers?

Mahindra plans to launch five all-electric SUVs in the Indian market from December 2024. With more than five million new cars per year in 2023, India is positioned as one of the largest automotive markets in the world. Therefore, this collaboration between Volkswagen and Mahindra is strategically important for both parties, allowing them to tap into the huge potential of this fast-growing market. As part of the deal, Volkswagen will supply components common to several electric models of its brands Volkswagen, Audi, Skoda, Seat and Cupra, as well as battery cells. Supply contract, open-ended “several years”covered total volume of about 50 GWh.
The partnership is also a major milestone for Volkswagen, as Mahindra will be its first external battery cell customer. Along with this collaboration, Mahindra also spent a large order from the French equipment manufacturer Valeo for the traction chain of its electric vehicles.

Volkswagen puts its pawns

For its part, Volkswagen has already launched an ambitious battery production project in 2022, creating a subsidiary company PowerCo. This initiative is aimed at reducing dependence on external suppliers, particularly from Asia, by developing internal battery production capacity.

With three facilities under construction in Germany, Spain and Canada, Production is expected to begin in 2025.

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