Mahindra & Mahindra is nearing the final stages of negotiations with Volkswagen, a collaboration aimed at boosting their electric vehicle initiatives by utilising the German automaker’s open platform for electric vehicles. Volkswagen has crafted a versatile and open vehicle framework for EVs, known as MEB, which is the foundation for constructing its vehicles and those belonging to affiliated companies.
In a move set to redefine the electric vehicle (EV) industry landscape, Indian automotive powerhouse Mahindra & Mahindra has entered advanced discussions with German automaker Volkswagen. Aiming to harness the potent technology of Volkswagen’s modular electric drive matrix (MEB), Mahindra is looking to secure key electric components for incorporation into its forthcoming EV models.
The MEB, or Modular Electric Drive Kit, is a versatile and open platform that Volkswagen utilizes in its vehicles and offers to other brands within its group, including Skoda and Audi. This initiative enables Volkswagen to extend its role as a provider of electric technologies and components to other car manufacturers.
In a recent development, both companies initialized an agreement in August, paving the way for Volkswagen to furnish Mahindra with essential electric components. This collaboration aligns well with Mahindra’s aggressive investment strategy in its EV subsidiaries, where it has earmarked nearly INR 10,000 crore for capital expenditure from fiscal year 2022 to 2027. According to the details released to the stock exchanges, approximately INR 4,000 crore of this budget is slated for deployment between FY22 and FY24, with the remainder to be utilized up till FY27.
As one of India’s leading sports utility vehicle (SUV) producers in terms of revenue, Mahindra is gearing up to introduce five new EV models between April and October 2025. The company envisions that integrating electric SUVs will constitute 20-30% of its entire SUV collection, amounting to roughly 200,000 units in sales volumes.
To meet ambitious de-carbonization targets, automobile companies in India are actively exploring external financial resources to expedite product introductions and expand their capacities within the EV sector.
Furthermore, Mahindra foresees its EV manufacturing to reach its zenith with an annual production capacity of 200,000 units between 2027 and 2029, primarily facilitated by its forthcoming facility in Chakan, Maharashtra, as stated by the Company President of the Automotive Sector, Veejay Nakra.