Aditi Shah

NEW DELHI, (Reuters) – German Volkswagen AG (OTC) announced Thursday that it is looking to partner with Indian carmaker Mahindra and Mahindra to provide electric components.

They said that Volkswagen (ETR) and Mahindra were currently evaluating the potential scope of their collaboration. The two companies expect to conclude the supply agreement before the end 2022.

Mahindra will build an all-electric vehicle platform, called “Born Electric”, and it intends to make use of components from Volkswagen such as batteries system parts or motors.

As India seeks to reduce its carbon emissions and climate change, the partnership will be a welcome addition to India’s Prime Minister Narendra Modi’s government.

“Together with Mahindra, we want to contribute significantly to the electrification of India,” said Thomas Schmall, chief executive of Volkswagen Group Components.

Volkswagen created a modular and open platform to make EVs. This is called MEB. It can be used for its own vehicles and the cars of others in the Volkswagen Group, including Skoda, Audi, and Skoda. Volkswagen is now able to supply parts and technology for other automakers through this platform.

Rajesh Jejurikar (executive director, auto and farm sector at Mahindra) said that Volkswagen’s extensive technology, innovation and vertically integrated in supply chain chains will give Mahindra a platform to build its EV platform. The company will soon reveal more details.