Mahindra and Volkswagen sign agreement for MEB electrical components in Chennai
Volkswagen and Mahindra & Mahindra Ltd. (M&M) are exploring the use of SEM electrical components for Mahindra’s new “born electrical platform”.
The two parties announced today that they signed a partnership agreement on May 18 to assess the scope of the collaboration. Mahindra intends to equip its “Born Electric Platform” with MEB electrical components such as electric motors, battery system components and battery cells. The partnership agreement assesses the scope of the collaboration – it indicates binding rules for the assessment phase as well as the non-binding scope of the supply.
The binding supply agreement will be negotiated in a continuous, constructive and legally compliant manner to be concluded by the end of 2022. Designed as an open vehicle platform, the MEB electric platform and its components allow manufacturers automobiles to build their portfolio of electrified vehicles quickly and cost-effectively.
The joint goal of both 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.
Thomas Schmall, Volkswagen Group Board Member for Technology and CEO of Volkswagen Group Components, said: “Mahindra is a pioneer in e-mobility in India and a great partner for our electric MEB platform. . With Mahindra, we want to make a significant contribution to the electrification of India, a huge automotive market with enormous growth potential and great importance for climate protection.
This is further proof that SEM is both state-of-the-art and very cost competitive. The MEB is thus gradually developing to become the first open e-mobility platform, generating significant volume and economies of scale. This is crucial for every company in the electric vehicle world and the key to competitive solutions for our customers.
Commenting on the partnership, Rajesh Jejurikar, Executive Director, Automotive and Agricultural Sectors, Mahindra & Mahindra Ltd., said: “We are very pleased to have Volkswagen, a major global investor in electric mobility, as a strategic partner in the realization of our ambitious Born Electric Vision.
The complementarity of their extensive technology, innovation and vertical integration into supply chains will provide a framework for developing our next generation “Born Electric Platform”, soon to be unveiled in Oxfordshire, UK. Our teams across India, UK and Detroit are passionately creating a breathtaking future.
Mahindra & Mahindra were trading at Rs885.85 each down Rs26.8 or 2.94% on BSE, around 2:24 p.m.