The shared objective of the two companies is to electrify
the Indian automotive market, one of the most important automotive growth
markets and a key element in the global decarbonisation of the mobility sector.
The binding supply agreement will be negotiated and
concluded by the end of 2022, it said.
With this partnership, Mahindra intends to equip its “Born
Electric Platform” with MEB electric components such as electric motors,
battery system components and battery cells.
The MEB electric platform and its components allows car
manufacturers to build their portfolio of electrified vehicles, quickly and
cost-effectively.
“It’s another proof point that the MEB is both
technologically state of the art and highly competitive in terms of cost. The
MEB is thus progressively developing into the leading open platform for
e-mobility, generating significant volume and economies of scale. That’s
crucial for every company in the EV world and the key to competitive solutions
for our customers,” said Thomas Schmall, Volkswagen Group Board of Management
member for Technology and CEO of Volkswagen Group Components.
India is one of the Global Top-5 Automotive Markets with
about three million vehicles per year. According to current forecasts, the
market could grow to up to five million vehicles by 2030. So far, the market
has been dominated by vehicles with diesel or petrol engines.
“The complementarity of their extensive technology,
innovation, and vertical integration in supply chains, will provide a framework
to develop our next gen “Born Electric Platform”, to be revealed soon in
Oxfordshire UK. Our teams across India, UK and Detroit are passionately
creating a breath-taking future,” said Rajesh Jejurikar, Executive Director,
Auto and Farm Sectors, Mahindra & Mahindra Ltd
At the 2021 Climate Summit in Glasgow, India undertook only
to register zero-emission passenger cars and vans, starting in 2035. As a
result, the electrification of the passenger car segment is expected to gain
significant momentum in the coming years. Industry experts anticipate that in
2030 more than half of all new vehicles will be fully electric.
"Mahindra is a pioneer in the electric mobility space
in India and a great partner for our MEB Electric Platform. Together with
Mahindra, we want to contribute significantly to the electrification of India,
a huge automotive market with enormous growth potential and high relevance for
climate protection," added Schmall.