Mahindra and Volkswagen Eye Electric Future in 50:50 JV: Read Here

There is a buzz within the automotive industry that the Indian automaker Mahindra and the German automaker Volkswagen are in pursuit of their 50:50 joint venture. In addition, Mahindra Auto and Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) have reportedly crossed the advanced stages of negotiations and are likely to near their collaboration.

Overview  

Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) is reportedly looking forward to relinquishing 50% of its stake in India business. Keep in mind, that this is a speculated story, but several reports hint at the potential joint venture between these two companies. 

This story developed after a couple of months when Skoda Auto Global CEO, Klaus Zellmer, stated that the German carmaker had made fruitful progress in looking for a potential joint venture with an Indian automaker. However, it is worth noting that both automakers have officially refrained from commenting on this development. 

Moreover, this partnership between VW and Mahindra will aim at developing and manufacturing battery electric vehicles (BEVs), and internal combustion engine (ICE) vehicles, for the Indian market and exports.  

This is not the first time that Mahindra has collaborated with international automakers. Interestingly, the Indian automobile manufacturer Mahindra had associations with SsangYong (now KG Mobility), Renault, Ford, and now Volkswagen. The latter and Mahindra collaborated on a supply agreement where VW supplied electric vehicle powertrain components for Mahindra’s INGLO platform that will underpin the upcoming XUV.e and BE range of electric vehicles. 

Given Volkswagen India’s ambitious plans, we feel that this partnership with Mahindra will help the German automaker achieve a strong foundation in the world’s third-largest car market. It seems that SAVWIPL has not managed to achieve its plans solely, despite being in the Indian market for over two decades. 

All-in-all, the SAVWPIL joint venture with Mahindra will be able to share risks, costs, technology, platforms, and the R&D team. In addition to that, Mahindra will also be able to witness the success of their electric vehicles, which will perhaps help them achieve the targeted 30% market share in India’s SUV market.