Mahindra Signs Supply Agreement To Source Volkswagen’s Unified Cell, MEB Components For INGLO EVs

Taking another concrete step towards formalising their partnership for the Indian market, Volkswagen and Mahindra have finalised a supply agreement that will see Mahindra source key vehicle components from Volkswagen, and more importantly, Volkswagen’s unified cells, for its upcoming INGLO series of electric vehicles (EVs). Initiated with a partnering agreement and term sheet in 2022, the collaboration between Volkswagen and Mahindra is expanding with the signing of this agreement, and both companies have confirmed they continue to evaluate other fronts for collaboration. 

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The carmakers have previously said they will evaluate the feasibility of co-developing EVs for India and other emerging markets, in addition to exploring possibilities on the battery cell localisation and EV charging infrastructure fronts.

The first EV based on Mahindra's born-electric INGLO architecture will arrive in December 2024.

The supply agreement spans multiple years, and Mahindra will source cells totalling over 50 GWh over the duration of this agreement. Mahindra intends to roll out the first EV based on its ‘born-electric’ INGLO architecture in December 2024. INGLO-based SUVs will be sold under two distinct sub-brands – XUV and BE – and will incorporate Volkswagen's modular electric drive matrix (MEB) platform components, comprising the electric powertrain, battery system, and battery cells. Volkswagen will provide components for as many as one million Mahindra EVs, a target projected to be achieved by the close of this decade.

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With this, Mahindra will become the first non-VW Group auto company to use Volkswagen's unified cell concept. Volkswagen's unified cell essentially standardises battery modules across various vehicle platforms. This standardisation not only simplifies manufacturing processes but also allows for greater flexibility and scalability in production.

VW's unified prismatic cell will slash battery costs by half.

According to VW, this concept – which employs a prismatic cell – will slash battery costs by as much as 50 per cent. The standardised design, which will be used in up to 80 per cent of all VW Group EVs by 2030, is also said to improve efficiency in assembly, cutting production times. The unified cell is also said to be scalable and chemistry-agnostic, and is also well-suited to solid-state tech, which Volkswagen anticipates will be ready for production vehicles by the middle of this decade.