Volkswagen and Mahindra sign an agreement for EV component

Volkswagen and Mahindra sign an agreement for EV component supply, which could lead to platform sharing.

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Volkswagen and Mahindra sign an agreement for EV component supply, which could lead to platform sharing. Volkswagen and Mahindra have inked a term sheet allowing the latter to utilize Volkswagen’s MEB architecture components in its Inglo platform-based electric vehicles. On an occasion when Mahindra introduced its new electric platform and XUV.e and BE series EVs, the term sheet was signed.

The signing is a progression from the earlier exploratory arrangement and should result in a final supply agreement by the end of 2022, according to the companies. Follow For More Updates at Volkswagen and Mahindra sign by Worldrapiddnews.com

  • VW and Mahindra intend to reach a legally binding agreement by the end of 2022.
  • Will also investigate cooperation on a broader scale, including automobile initiatives.
Volkswagen and Mahindra sign an agreement for EV component supply, which could lead to platform sharing.

System sharing

In addition to the supply of EV components, Mahindra and Volkswagen are exploring deeper cooperation, including the sharing of platforms and the production of cells, which would not be confined to India. Thomas Schmall, a member of the Volkswagen Group Board and CEO of Volkswagen Group Components, stated to the media, “If we reach a collaborative agreement to utilize Inglo technology, the relationship would not be restricted to India.”

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However, he also stated, “Mahindra is one of the players in this field [EVs], and we are already in discussions with a number of potential partners to determine who would be our partner for emerging markets.”

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The words imply that Volkswagen is open to exploring the usage of Mahindra’s Inglo platform, but he made it plain that Skoda, which is in charge of India operations, would take the lead should the cooperation develop into joint platform developments. “Skoda is in charge of India, therefore today we discuss components and modules, but if we get to joint platforms and top hats, then Skoda will outline the future strategy.”

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Skoda and Volkswagen will begin their EV journeys in India with the import of premium EVs such as the Enyaq and ID.4 SUVs. However, both automakers intend to eventually manufacture EVs locally in India. Here, Mahindra’s new Inglo platform could facilitate the company’s entry into India’s low-cost EV market. Last year, the business debuted its compact ID. The life concept vehicle, which was based on the company’s innovative modular electric platform – MEB – while keeping ID’s prices low. Life is also seen as a challenge. Volkswagen and Mahindra sign

Manufacturing Cells

Volkswagen and Mahindra sign an agreement for EV component supply, which could lead to platform sharing.  Volkswagen and Mahindra sign an agreement for EV component download 14 27
Volkswagen and Mahindra sign an agreement for EV component supply, which could lead to platform sharing.

Currently, Mahindra will import its batteries from Volkswagen; however, both parties are eager to explore the possibility of local production. Schmall responded, “Let’s see,” when asked by Autocar India if the batteries would be sourced from Volkswagen’s state-of-the-art Salzgitter facility. He added that it is yet uncertain whether one or both partners will manufacture the batteries locally.

Schmall estimates that it costs a minimum of $2 billion to establish a cell production facility. Therefore, a rigorous evaluation will be required before the two partners continue on this path; yet, given the available volumes, both brands are interested. “We are in discussions with Mahindra regarding the supply of components for more than one million automobiles through 2030, and this is exclusively for Mahindra in India. This is a substantial amount, approximately 3,00,000 each year. It begins to make sense between 1.5 million and 2 million dollars per year, so we are above that with Mahindra.” Volkswagen and Mahindra sign

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