VW & Mahindra sign MEB component supply agreement
The Volkswagen Group and Indian vehicle manufacturer Mahindra have signed a term sheet for the supply of MEB components for Mahindra’s new Inglo all-electric vehicle platform. Mahindra has also provided a preview of the first five models.
The term sheet now signed will deepen the partnership agreement reached in May, Volkswagen said. The aim is to supply five electric SUV models with MEB components with a volume of more than one million units.
The term sheet covers all major commercial and technical provisions, including a path toward potential localisation of the battery system. In other words, the possibility of manufacturing batteries in India in the future is also being examined. “Regarding the next step towards a possible strategic alliance for India, both companies agree to explore further potential areas of collaboration in the field of e-mobility, including vehicle projects, the localization of battery cell manufacturing and charging and energy solutions for the electric ecosystem in India,” according to VW. A binding supply agreement is to be worked out in compliance with the law by the end of 2022.
“We are happy that we have identified a larger scope of collaboration between our two companies,” said Thomas Schmall, Volkswagen group board member for technology and chairman of Volkswagen Group Components. “Together, Volkswagen and Mahindra can contribute significantly to the electrification of India, a huge automotive market with ambitious climate protection commitments. The MEB Electric Platform and its components are key to affordable sustainable mobility around the globe.”
Rajesh Jejurikar, Executive Director, Auto and Farm Sectors at Mahindra & Mahindra, sees the signing of the term sheet as a significant step. “Our purpose-built INGLO platform offers unmatched potential for growth and further customization for developing new and innovative products, not just for India, but for global markets,” Jejurikar said. “Our vision is to lead the electric mobility revolution in India by bringing authentic electric SUVs with cutting-edge technology, as showcased in the UK today.”
Details of the Inglo platform are not yet mentioned in the statement, but Mahindra’s own characteristics are likely to relate to areas such as the chassis, bodies and the interior including infotainment, as for the powertrain itself, the Indians are largely adopting VW components – such as the electric motors or battery systems.
At the event in the UK, Mahindra gave a preview of no less than five SUV models, as already mentioned by Jejurikar. For the Inglo models, the group has created two brands called XUV and BE. The models are named XUV.e8, XUV.e9, BE.05, BE.07 and BE.09. The first four of these electric SUVs are expected to be launched between 2024 and 2026.
On the direction of the new subsidiary brands, Mahindra is still very much in the preliminary buildup phase. It said the “iconic XUV brand” will target customers “who have the passion to live life beyond boundaries while making a difference” with “sophisticated futuristic design, pulsating performance and dynamic innovation”. “The bold, stimulating and exciting BE brand” is said to appeal to customers “who want to define their life’s journey their own way while making a difference”: “A brand that will let customers be who they want to be.”