The Volkswagen-Group and the Indian car manufacturer Mahindra have agreed on a supply pact for electrical components and batteries. Mahindra will equip part of its Inglo electric platform with electrical components from the Wolfsburg-based MEB platform and also purchase battery cells from the Germans, the companies announced on Friday in Chennai and Wolfsburg. The companies had already signed a declaration of intent in 2022. The companies are now considering expanding their collaboration.
Based on its Inglo platform, Mahindra says it plans to launch a total of five fully electric SUVs from December this year. The company wants to participate in the electrification of the Indian car market: With more than five million new vehicles, the Indian market is one of the largest in the world. As in other countries, further advances in electric motors are expected on the subcontinent in the future.
Mahindra will be the first partner to use VW’s so-called standard battery cell. The supply contract has a term of several years and covers a total volume of around 50 gigawatt hours (GWh) of battery capacity.
Volkswagen is currently building three of its own battery cell factories, one in Salzgitter, one in Spain and one in Canada. The plant in Salzgitter, for example, is scheduled to start in 2025 and have an annual capacity of 40 GWh, which, according to VW, should be enough for around 500,000 electric vehicles.
The partnership with the Indian company is apparently well received on the stock market. Volkswagen shares were 1.4 percent higher on Friday.