Volkswagen And Mahindra & Mahindra Near Deal On EV Components

Top-tier German automotive manufacturer, Volkswagen, has announced that it has deepened discussions with Indian automotive company, Mahindra & Mahindra (M&M), regarding the utilisation of its MEB electric platform.

What Happened: The talks between Volkswagen and Mahindra & Mahindra are now at an advanced stage, the German automaker revealed on Monday. M&M is negotiating to use key electric components from the MEB platform, Volkswagen’s open platform for electric vehicles.

The Indian automotive manufacturer wants to use central MEB components like the e-drive and unit cells for its models, according to a statement from Volkswagen.

See Also: This Micro Cap Stock Has Surged 40 In 6 Months Why Analyst Sees Another 60 Rally

Volkswagen’s MEB is a highly flexible and open vehicle platform for electric vehicles that is used not only by Volkswagen but also by other group companies such as Skoda and Audi. This open platform enables Volkswagen to supply electric technology and parts to other automakers.

Volkswagen and Mahindra had earlier signed a term sheet back in August, setting the stage for the potential supply of electric components from the German auto giant to the Indian company.

Why It Matters: This potential deal marks a significant move for both Volkswagen and Mahindra & Mahindra. For Volkswagen, it represents another step in its strategy to share its electric technology with other automakers, thereby broadening the reach of its MEB platform. For Mahindra & Mahindra, adopting key electric components from a global leader such as Volkswagen can significantly bolster its electric vehicle capabilities and offerings.

Moreover, this kind of collaboration is increasingly vital in the automotive industry, as companies seek to share costs and risks associated with the development and production of electric vehicles. As such, a deal between Volkswagen and Mahindra & Mahindra could set a precedent for future partnerships between global and Indian automakers in the rapidly growing electric vehicle market.

Read Next: Zerodha Co Founder Nikhil Kamaths Investment Sends Nazara Shares Surging 10

Engineered by Benzinga Neuro, Edited by Shomik Sen Bhattacharjee

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Market News and Data brought to you by Benzinga APIs

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EVMahindraMahindra & MahindraVolkswagenVolkswagen AG