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VW and Mahindra explore Strategic Alliance to Accelerate the Electrification of India's Car Market.

The Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) announced today that they intend to expand their cooperation. Both companies signed a term sheet to supply MEB components for Mahindra's new all-electric vehicle platform, INGLO, further strengthening the recent partnership agreement. The aim is to achieve a volume of more than one million units over a lifetime and to supply five electric SUV models with MEB components. In addition, the two companies intend to explore further opportunities for cooperation up to a broader strategic alliance to accelerate the electrification of the Indian automotive market.

Mahindra unveiled its new electric SUV family for the first time at the Born EV Vision event in Banbury, UK. The electric SUVs will be based on the new INGLO platform and will be equipped with MEB components such as Volkswagen's electric powertrain, battery system and standard cell. The term sheet covers all important commercial and technical regulations, including a path to a potential localization of the battery system. A binding supply agreement is to be drawn up constructively and legally compliant by the end of 2022.

With a view to the next step towards a possible strategic alliance for India, the two companies have agreed to explore further potential fields of cooperation in the field of e-mobility, including vehicle projects, the localization of cell manufacturing, and charging and energy solutions for the electrical ecosystem in India.

Thomas Schmall, Volkswagen Group Board Member for Technology and Chairman of the Board of Management of Volkswagen Group Components, said: "We are pleased that we have identified a larger scope for the cooperation between our two companies. Together, Volkswagen and Mahindra can make a significant contribution to the electrification of India, a huge automotive market with ambitious climate protection goals. The MEB and its components are the key to affordable, sustainable mobility worldwide. The partnership shows that our platform business is fully competitive and the MEB is on its way to becoming one of the leading open platforms for e-mobility. We are consistently implementing the NEW AUTO strategy, with which we are making the platform business a strong pillar of our Group and tapping into future profit pools through economies of scale."

Commenting on the project, Rajesh Jejurikar, Executive Director, Auto and Farm Sectors, Mahindra & Mahindra Ltd., said: "The signing of the technical-commercial term sheet is a significant step forward in our partnership with Volkswagen. Our new INGLO platform, specially developed for e-mobility, offers unsurpassed potential for growth and the tailor-made development of new and innovative products – not only for India, but also for global markets. Our vision is to lead the e-mobility revolution in India by bringing authentic electric SUVs with cutting-edge technology to market, as we are showing in the UK today. We are very pleased to explore further areas of possible cooperation with Volkswagen and are confident that together we can shape an exciting electric future."

With around three million new vehicles per year, India is one of the five largest automotive 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 likely to gain significant momentum in the coming years.

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