Mahindra & Mahindra Ltd. and Germany's Volkswagen AG have signed the first supply agreement for EV components, as part of their partnership to push electric mobility in India.
The Mumbai-based automaker will equip a certain range of its so-called INGLO platform with EV components from the Bavarian carmaker's MEB chassis, according to an exchange filing on Friday. The deal includes supply of certain electrical components and unified cells.
The MEB chassis—or modular electric drive matrix—forms the underpinnings of VW brands such as Audi and Skoda, as well as its ‘ID.' range of electric cars. INGLO, which is short for ‘Indian at Heart, Global in Reach', has been designed specifically for M&M's “born electric” range of sports utility vehicles.
M&M and Volkswagen had first entered into a partnership in 2022 to use Volkswagen's EV components like motors, battery systems and cells. This supply agreement, which will run over several years with a total volume of 50 gigawatt hours, makes M&M VW's first external partner to use the unified cells technology.
The timing of the deal is significant, for it comes a day after M&M said it plans to launch at least six electric SUVs over the next 18 months. At present, Mahindra has only XUV4OO in its EV portfolio.
“These cars are going to compete with the best in the world, and our hope is that they will move ahead of the best in the world as well,” Mahindra Group's Chief Executive Officer Anish Shah told NDTV Profit's Niraj Shah during a post-earnings interview on Thursday.
“I have test-driven three of them, they have come out really well, and we are looking forward to that launch.”
Shares of Mahindra & Mahindra Ltd. rose as much as 5.64%, the highest level since listing on Jan. 3, 1996, before paring gains to trade 4.66% higher at 12:44 p.m. This compares to a 0.60% advance in the NSE Nifty 50.
The stock has risen 35.01% in 12 months. Total traded volume so far in the day stood at 3.5 times its 30-day average. The relative strength index was at 71.68, implying the stock is overbought.
Of the 41 analysts tracking the company, 36 maintain a 'buy' rating and five recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside 2.8%.
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