It’s no secret that Mahindra and Volkswagen have signed a term sheet for the supply electrical components from VW’s MEB platform for Mahindra’s INGLO born electric platform. Now, a media report reveals that Mahindra & Mahindra and Skoda Auto Volkswagen India are nearing the finalization of the joint venture to share platforms and technology.
Mahindra & Skoda VW – 50:50 Joint Venture
The 50:50 joint venture between the companies are likely to go through by the end of this year. In addition to this, reports also reveal that the two companies are also likely to share the development cost of both Electric Vehicles as well as Internal Combustion Engine models. But, the focus is likely to be more of electric SUVs for the global market. Mahindra and Skoda production facilities at Chakan Pune are likely to become the production base for the models that spawn from this joint venture.
Electric Vehicle Platform Component Sharing
Reports also reveal that the Skoda VW is currently looking at the sharing costs and risks as well as the potential on the equity partnership with Mahindra. However, there has been no official word from both the companies regarding the new joint venture. While VW Group has already agreed to share the electrical components from its MEB platform for the Mahindra INGLO platform. Currently, Mahindra has only 1 electric vehicle in its product portfolio, the XUV400. But, with the INGLO platform the brand plans to introduce 7 born electric vehicles by the end of this decade.
Reports also reveal that the sedans and SUVs that the VW Group currently sells in India, including Audi and Porsche will not be part of the joint venture. This leads us to believe that while the joint venture will enable cost, technology and vehicle platform sharing for future product development, both brands are likely to develop their own products, unlike a brand engineering exercise.
Also Read: New Maruti Suzuki electric car is just months away from production
