Volkswagen Set To Supply EV Batteries To Mahindra

Volkswagen Group and leading Indian automaker Mahindra & Mahindra (M&M) have inked a supply agreement, marking a significant advancement in their shared vision in the e-mobility space.

Under this agreement, Volkswagen will supply electronic components and unified battery cells from its MEB platform to power Mahindra’s purpose-built electric platform, INGLO.

The collaboration, which kicked off as a partnering agreement and term sheet in 2022, now sees both entities commit further into exploring further expansion opportunities. This will also make Mahindra the first external partner to integrate Volkswagen's groundbreaking unified battery cell into its own lineup of EVs.

The supply agreement is set to span several years and is projected to reach a total volume of approximately 50 GWh over its lifetime. Together, Volkswagen Group and Mahindra aspire to reinforce their presence in the Indian e-mobility market and accelerate the electrification drive in the region.

Mahindra has ambitious plans to introduce five e-SUV models too — XUV.e8, XUV.e9, BE.05, BE.07, and BE.09. All underpin its newly developed INGLO electric platform, and the first of this lot will launch by Dec 2024.

With India registering over five million new vehicles in 2023 alone, it stands as one of the largest automotive markets globally, with significant momentum expected in passenger car electrification in the years to come.

To put the market size into context, Malaysia’s very own Gentari, a subsidiary of the Petronas Group, has in recent years expanded rapidly in India by trying to carve a sizeable space in the the country’s utility-scale renewable energy (RE) projects, manufacturing green hydrogen, public EV charging infra, and leasing EVs to logistics.