Mahindra and VW seal deal for MEB components

Volkswagen and the Indian vehicle manufacturer Mahindra have signed the first supply contract for MEB components from Volkswagen for Mahindra's electric platform INGLO. However, the partners did not disclose when deliveries will begin.

Image: Mahindra

In spring 2022, Mahindra announced its intention to use components from Volkswagen’s MEB modular system for its EV platform. Almost two years later, the two have finalised the deal. For VW, Volkswagen Group Technology and its “Platform Business” division and Skoda Auto Volkswagen India will coordinate the new partnership with Mahindra. According to the former, the recently signed contract covers the supply of MEB components and unified cells. That makes Mahindra the first external partner to adopt Volkswagen’s unified cell. Both companies want to “evaluate a potential expansion of the collaboration.”

According to the German carmaker, the supply contract has a term of several years and will have a total volume of around 50 GWh over its entire duration. What is striking is that Volkswagen does not mention the planned start of the supply agreement or the terms of the contract. When Volkswagen and Mahindra agreed on the key points of a possible contract in a document (“Term Sheet”) in the summer of 2022, there was talk of equipping five electric SUV models from Mahindra with a volume of more than one million units with MEB components from 2024. However, rumours have since emerged that there will be significant delays. The Indian portal Autocar Professional reported in August 2023, citing insiders, that the battery cells and electric motors would not be delivered to Mahindra until 2026 or 2027. Mahindra would thus equip its new electric models with battery cells from BYD and electric motors from Valeo right from the start. A deal with Valeo has been confirmed.

Mahindra never commented on the BYD rumours. Volkswagen’s announcement now clarifies that its agreement with Mahindra is in place, but not when the deliveries will start and which MEB components are involved. For example, there is no explicit mention of electric motors.

The Indian manufacturer’s “Born Electric” SUVs will be based on Mahindra’s all-electric INGLO platform. The platform relies on the supply of an electric drive and battery system. According to earlier information, Mahindra is primarily responsible for the chassis, body and interior, including infotainment.

Mahindra previously founded two brands called XUV and BE for vehicles based on the INGLO platform. Five all-electric SUVs will be launched in India starting December 2024. The first will be the XUV.e8. A production site in Pune in the Indian state of Maharashtra was announced at the end of 2022.

Volkswagen’s MEB platform and its components are currently used by Volkswagen, Audi, Skoda, Seat/Cupra, and the external partner Ford (although Ford does not purchase the unified cell from Volkswagen). The first Ford electric vehicle with MEB components – the Explorer – was due to hit the road at the beginning of 2024. However, the launch has been postponed by six months.


about „Mahindra and VW seal deal for MEB components“

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