Mahindra group and global auto major Volkswagen on Monday said they have inked a pact to further explore co-operation in the electric vehicles segment. The companies have inked a term sheet on the supply of MEB (modular electric drive matrix) electric components for the Mumbai-based automaker's new electric platform INGLO, deepening the partnering agreement from earlier this year. The partnership intends to have a volume of more than one million units over lifetime and include the equipment of five all-electric SUVs with MEB components.


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In addition, the two companies will explore further opportunities for collaboration, opening the perspective towards a broader strategic alliance to accelerate the electrification of the Indian automotive market, the companies said in a joint statement. Mahindra on Monday showcased its new electric SUV range at its Born EV vision unveil event in Banbury, UK.


The electric SUVs will be launched on the all-new INGLO platform architecture and are envisaged to be equipped with MEB components, including the electric drivetrain, battery system and battery cells. The term sheet covers all major commercial and technical terms along with a path to the potential localisation of the battery system. The final supply agreement will be negotiated in a continued constructive and legally compliant way by the end of 2022.


Regarding the next step towards a possible strategic alliance for India, both companies have agreed to explore further potential areas of collaboration in the field of e-mobility, including vehicle projects, localisation of battery cell manufacturing and charging and energy solutions for the electric ecosystem in India, the companies said.


"Together, Volkswagen and Mahindra can contribute significantly to the electrification of India, a huge automotive market with ambitious climate protection commitments," Volkswagen Group Board of Management Member for Technology and CEO of Volkswagen Group Components, Thomas Schmall said.


The MEB Electric Platform and its components are key to affordable sustainable mobility around the globe, he added. Commenting on the tie up, Mahindra & Mahindra Executive Director, Auto and Farm Sectors, Rajesh Jejurikar said the signing of the techno-commercial term sheet is a significant step forward in the company's partnership with Volkswagen.


"INGLO platform offers unmatched potential for growth and further customisation for developing new and innovative products, not just for India, but for global markets," he added. Jejurikar stated the Mumbai-based auto major is committing capital and bringing in technology partners to take on the potential opportunities not only in India but world over.


With around 30 lakh new vehicles per year, India is one of the five largest automobile markets in the world and along with China, the only region to record an increase in new registrations in the first half of 2022. The electrification of the passenger car segment is expected to gain significant momentum in the coming years.


On Monday, Mahindra unveiled its new INGLO EV platform and five e-SUVs under two EV brands showcasing its vision for the future of electric mobility.