Car News

Volkswagen-Mahindra ink pact for EV part sharing | Autocar India

Written by Rashmi

The 2 corporations are additionally exploring joint initiatives that may embrace platform sharing and cell manufacturing.

Volkswagen and Mahindra have signed a time period sheet to provide the previous’s MEB structure elements to the Indian carmaker to be used in its Inglo platform-based EVs. The time period sheet was signed at an occasion the place Mahindra unveiled its new electrical platform and XUV.e and BE collection of EVs.

The signing is a step farther from the earlier inked exploratory settlement and will result in a remaining provide settlement that the businesses say shall be in place by the tip of 2022.

  • VW and Mahindra goal to have a legally binding settlement by 2022-end
  • Can even discover broader cooperation, together with automobile initiatives 

Platform sharing

In addition to the availability of EV elements, Mahindra and Volkswagen are additionally exploring additional cooperation, together with platform sharing and cell manufacturing, which might additionally not be restricted to solely India. Talking to the media, Thomas Schmall, Volkswagen Group Board member and CEO of Volkswagen Group Elements, mentioned, “If we come to a joint settlement to make use of Inglo expertise, then it [the partnership] wouldn’t be restricted to India.”

He did, nonetheless, additionally state, “Mahindra is one participant on this house [EVs] and we’re discussing with a number of companions as to who can be our accomplice for rising markets.”

The statements allude to the truth that VW is open to exploring using Mahindra’s Inglo platform, although he made it clear that ought to the partnership deepen into joint platform initiatives then Skoda – who’s answerable for India operations – would take the lead. “Skoda is accountable for India, so at present we focus on elements and modules, but when we come to joint platforms and prime hats, then Skoda will outline the plan forward.”

At present, each Skoda and VW will start their EV journey in India with the import of higher-end EVs like Skoda Enyaq and the VW ID.four SUVs. Nevertheless, each manufacturers finally need to regionally make EVs for India. It’s right here that Mahindra’s new Inglo platform might be the ticket to the group’s entry into India’s lower-cost EV market. Final yr, the corporate showcased its small ID.Life idea automotive constructed on the agency’s new modular electrical platform – MEB – nonetheless, maintaining prices low with ID.Life can also be understood to be a problem.

Cell Manufacturing

For now, Mahindra will import its batteries from VW, nonetheless, each companions are open and eager to discover native manufacturing as properly. In response to a query from Autocar India whether or not the batteries would come from VW’s state-of-the-art plant in Salzgitter, Schmall mentioned, “Let’s see.” He additional said that whether or not one or each companions would make the batteries regionally remains to be undecided.

Organising a cell manufacturing plant is a really expensive affair – Schmall says it begins with USD 2 billion simply to arrange the plant. Thus, a cautious evaluation shall be wanted earlier than the 2 companions embark on that route, nonetheless, each manufacturers are eager given the volumes on provide. “We’re speaking with Mahindra about provide of elements for greater than 1 million automobiles till 2030, and that is just for Mahindra in India, and that’s so much, about 3,00,000 per yr. It begins to make sense in case you are at 1,50,000 to 2,00,000 per yr and so we’re above that with Mahindra.”

About the author

Rashmi