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As on 19-May-2022  14:22

M&M partners with Volkswagen for MEB electric components

Both parties announced today that they have signed a partnering agreement to evaluate the scope of collaboration.

Mahindra intends to equip its “born electric platform” with MEB electric components such as electric motors, battery system components and battery cells.

The partnering agreement evaluates the scope of collaboration - it indicates binding rules for the evaluation phase as well as the non-binding scope of supply. The binding supply agreement will be negotiated in a continued constructive and legally compliant way to conclude by the end of 2022.

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

The shared objective of the two companies is to electrify the Indian automotive market, one of the most important automotive growth markets and a key element in the global decarbonisation of the mobility sector.

Rajesh Jejurikar, executive director, auto and farm sectors, Mahindra & Mahindra, stated: “We are very pleased to have Volkswagen, a significant global investor in the electric mobility space, as a strategic partner in achieving our ambitious Born Electric Vison.

The complementarity of their extensive technology, innovation, and vertical integration in supply chains, will provide a framework to develop our next gen “Born Electric Platform”, to be revealed soon in Oxfordshire UK.”

India is one of the Global Top-5 Automotive Markets with about three million vehicles per year. According to current forecasts, the market could grow to up to five million vehicles by 2030. So far, the market has been dominated by vehicles with diesel or petrol engines.

However, at the 2021 Climate Summit in Glasgow, India undertook only to register zero-emission passenger cars and vans, starting in 2035. As a result, the electrification of the passenger car segment is expected to gain significant momentum in the coming years. Industry experts anticipate that in 2030 more than half of all new vehicles will be fully electric.

M&M Group enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India. It is the world's largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.

The company reported 22% fall in standalone net profit before exceptional items to Rs 1,353 crore in Q3 FY22 as compared with Rs 1,745 crore in Q3 FY21. Revenue rose by 8% YoY to Rs 15,239 crore during the quarter.

The scrip fell 2.85% to currently trade at Rs 886.60 on the BSE.

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