Volkswagen of Germany is looking at a partnership to offer electric components to Mahindra and Mahindra of India, the firms said on Thursday.
Volkswagen and Mahindra are assessing the scope of their relationship and plan to finalize a supply deal by the end of 2022.
Mahindra is developing a "Born Electric" electric vehicle (EV) platform from the ground up, including components such as electric motors, battery system parts, and battery cells obtained from Volkswagen.
The collaboration comes at a time when Prime Minister Narendra Modi's administration is giving billions of dollars in incentives to firms to develop EVs and their parts in India, as the country strives to fulfill its climate change and carbon reduction targets.
"Together with Mahindra, we want to contribute significantly to the electrification of India," said Thomas Schmall, chief executive of Volkswagen Group Components.
Volkswagen has developed a modular, open vehicle platform for EVs, called MEB, which is used to build to its own cars and those of other group companies including Skoda and Audi. This also allows Volkswagen to be a supplier of electric technology and parts to other automakers.
Rajesh Jejurikar, executive director for the auto and farm sectors at Mahindra, said Volkswagen's "extensive technology, innovation, and vertical integration in supply chains" will provide a framework to develop Mahindra's EV platform which the company will reveal soon.
Source: Reuters