Mahindra And Skoda-Volkswagen To Build Electric Cars Together In A Joint Venture

Reports about Mahindra and Volkswagen group entering a partnership have been doing rounds on the internet for quite sometime. The partnership’s aim is to develop electric vehicle for both India and International markets. Fresh details related to this partnership has surfaced online.

As per the recent reports Mahindra & Mahindra (M&M) and Skoda Auto Volkswagen India (SAVWIPL), the Volkswagen Group’s wholly owned India subsidiary is currently working on 50:50 joint venture model. The talks are said to be in the advanced stages. Under this partnership both brands plan to share cost, technology and vehicle platforms for future product developments.

As per the recent reports the joint venture would not only be applicable for electric cars bit also for ICE vehicles. However the main focus would be electric SUVs for Indian market. Both Mahindra and Volkswagen have not shared any information about the joint venture and we are expecting an official announcement from them by the end of 2024.

Brands like Audi and Porsche won’t be a part of this upcoming joint venture. Both Mahindra and Volkswagen will utilise their Manufacturing facility in Pune’s Chakan to roll out their new electric vehicles. Mahindra really needs this deal but, it looks like Volkswagen is taking its dear time to figure out the details of the deal before finalising it.

This new development comes after the recent statement by Skoda Auto CEO Klaus Zellmer. He said, “India is not only the most attractive region for us outside Europe, but it is also the most competitive environment that you probably find currently in the automotive market. You have many new competitors, new entrants, new cars. So it really is a predatory environment.”

The manufacturer considers India as one of those markets that they haven’t been able crack. This is the reason why they are currently looking for local partners who have an understanding about th market in a much better manner. Klauss also mentioned in one of the reports that they are making great progress in terms of partnership with an Indian manufacturer.

The association between the VW Group and Mahindra started with the signing of the first supply agreement on components of Volkswagen’s MEB platform for Mahindra’s purpose built electric vehicle platform INGLO.

This is not the first time, Mahindra has tied up with foreign car manufacturer for a joint venture in India. Before this, they had a partnership with Ssangyon and they were also in discussion with Ford before they left India.

Mahindra is a bit late to the electric vehicle space in India when compared to manufacturers like Tata Motors. Mahindra is currently working on a variety of electric models and they are based on the INGLO platform.

Mahindra and Mahindra has announced that they’ll invest 12,000 crore in the EV business over the next three years. Their first electric vehicle under this new phase will be launched in the second half of 2025. The BE.05 electric SUV has been spotted testing several times on Indian roads and from the recent pictures, it looks like the BE.05 is almost production ready.