The German Volkswagen Group and Indian manufacturer Mahindra & Mahindra have inked a supply deal for parts for M&M’s INGLO platform, the firm announced in a stock exchange filing on Friday.
According to the firm, M&M will use VW’s MEB and unified cells’ electric components in a certain range of its electric platform INGLO as part of this deal. The supply agreement will be for a number of years, with a total lifespan volume of about 50 GWh.
Following the news, M&M shares saw a slight increase in value; as of 11:20 am, they were up 3%. Benchmark indices had a 0.5% increase in the meanwhile.
A key component of Volkswagen’s battery strategy, the unified cell concept will be used for the first time by M&M, an outside partner. Audi, Skoda, SEAT/CUPRA, and Ford are now using Volkswagen’s MEB platform.
“With this deal, Volkswagen and Mahindra are expanding their partnership, which began in 2022 with a term sheet and cooperation agreement. Both businesses will keep considering whether to expand their partnership,” a statement from the company stated.
Mahindra intends to introduce five completely electric SUVs into the Indian market starting in December 2024 with INGLO. Chairman Anand Mahindra described the INGLO platform as a “disruptive new electric platform” when he unveiled it back in 2022.
M&M’s revenue increased by 15% to Rs 35,299 crore in Q3 of this year, but its profit after tax increased by 34% year over year to Rs 2,658 crore.
This quarter, our businesses produced a strong operating performance. Auto expanded quickly and is still gaining market share, which has doubled its earnings. Despite challenging market conditions, Farm has increased its market share, according to M&M Managing Director & CEO Anish Shah.
Furthermore, VW said on Wednesday that it is in discussions with its Chinese joint venture partner on its operations in Xinjiang. This came after a German tabloid published alleged proof of the automaker’s use of forced labour.
The matter intensifies the pressure on Germany’s largest companies to reconsider their connections with China, particularly in the Xinjiang area, where human rights organisations have revealed violations such as forced labour in prison camps. Beijing refutes any such mistreatment.
According to a report in the business journal Handelsblatt, independent researcher Adrian Zenz discovered proof that forced labour was used during the building of a test track in Turpan, Xinjiang. The track is run by a subsidiary of SAIC and Volkswagen’s joint venture.
