Volkswagen Mahindra Term Sheet
During the term sheet signing ceremony

Volkswagen and Mahindra Group sign a term sheet for the supply of MEB components

Volkswagen and Mahindra Groups have signed a term sheet for the supply of Volkswagen’s MEB electric components to Mahindra. And the components will be used by Mahindra on its upcoming Inglo platform electric cars slated for launch from 2024 onwards.

This has deepened the partnership between the 2 conglomerates which got kickstarted earlier. The cooperation intends to have a volume of more than 1 million units over lifetime and includes the equipment of all the 5 electric SUVs of Mahindra.

In addition, the 2 auto giants will explore further opportunities for collaboration opening the perspective towards a broader strategic alliance to accelerate the electrification of the Indian automotive market.

Some of the MEB components that will be given to Mahindra include the electric drivetrain, battery system, and Volkswagen’s unified cell. The term sheet covers all major commercial and technical terms along with a path to the potential localisation of the battery system.

The final supply agreement will be negotiated in a continued constructive and legally compliant way by the end of 2022.

However, the next major step in the collaboration would be in the field of e-mobility that includes vehicle projects, localisation of cell manufacturing, charging, and energy solutions for the electric ecosystem in India.

With around 3 million new vehicles per year, India is 1 of the 5 largest automobile markets in the world and, along with China, the only region to record an increase in new registrations in the first half of 2022.

The electrification of the passenger car segment is expected to gain significant momentum in the coming years.

Back in May, Volkswagen and Mahindra entered into a strategy partnership paving way for Mahindra to start exploring the options of using Volkswagen Group’s Modular Electric Drive Matrix (MEB) platform and components for its upcoming electric cars.

Mahindra Inglo EV Platform Range
Mahindra’s Inglo platform EVs

The agreement said there would be binding rules for the evaluation phase as well as the non-binding scope for supply. The binding supply agreement could, however, be negotiated in a continued constructive and legally compliant way by this year.

Designed as an open vehicle platform, the MEB electric platform and its components allow car manufacturers to build their portfolio of electrified vehicles quickly and cost-effectively.

As of now, Volkswagen’s MEB platform is used by the Group’s brands – Volkswagen, Audi, Skoda, Seat, and Cupra. Some companies outside the Volkswagen Group are also using the platform.