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Mahindra Group's auto flagship company, Mahindra & Mahindra (M&M), and Germany-based Volkswagen Group on Monday said they intend to expand their strategic alliance to accelerate the electrification of the Indian auto market. The two auto giants have signed a Term Sheet for the supply of MEB electric components to Mahindra’s new, purpose-built electric platform INGLO. Through their extended alliance, the duo aims to have a volume of more than one million units over a lifetime and includes the equipment of five all-electric SUVs with MEB components.

Additionally, M&M and Volkswagen also plan to explore further opportunities for collaboration, opening the perspective toward a broader strategic alliance to accelerate the electrification of the Indian automotive market.

This deepens their partnering agreement from earlier this year.

On Monday, during the 75th Independence Day, Mahindra Group introduced their new electric SUV family at the Mahindra Born EV vision unveil event in Banbury, United Kingdom. The electric SUVs will be launched on the all-new INGLO platform architecture and are envisaged to be equipped with MEB components including the electric drivetrain, the battery system, and battery cells.

As per the regulatory filing, the Term Sheet covers all major commercial and technical terms along with a path to the potential localization of the battery system.

The two companies will negotiate a final supply agreement in a continued constructive and legally compliant way by the end of 2022.

Rajesh Jejurikar, Executive Director, Auto, and Farm Sectors, Mahindra & Mahindra said, “The signing of the techno-commercial term sheet is a significant step forward in our partnership with Volkswagen. Our purpose-built INGLO platform offers unmatched potential for growth and further customization for developing new and innovative products, not just for India, but for global markets."

Jejurikar added, "Our vision is to lead the electric mobility revolution in India by bringing authentic electric SUVs with cutting-edge technology, as showcased in the UK today. We are very pleased to explore further areas of potential collaboration with Volkswagen and are confident that together, we will be able to shape an exciting electric future."

Meanwhile, on the alliance, Thomas Schmall, Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components, said, "Together, Volkswagen and Mahindra can contribute significantly to the electrification of India, a huge automotive market with ambitious climate protection commitments. The MEB Electric Platform and its components are key to affordable sustainable mobility around the globe. The partnership not only demonstrates that our platform business is highly competitive, but also that the MEB is well on track to become one of the leading open platforms for e-mobility."

"We are thus delivering on the focus of our Volkswagen NEW AUTO strategy to make the platform business a strong pillar of our Group and to unlock future profit pools through economies of scale," Schmall added.

On the next step towards a possible strategic alliance for India, the statement said, both Volkswagen and M&M agree to explore further potential areas of collaboration in the field of e-mobility, including vehicle projects, the localization of battery cell manufacturing and charging and energy solutions for the electric ecosystem in India.

Earlier today, M&M also inaugurated its new design centre of excellence, Mahindra Advanced Design Europe (M.A.D.E), which will serve as the conceptual hotbed for the company’s portfolio of EV products. Group Chairman Anand Mahindra along with Ranil Jayawardena, MP for North East Hampshire and Parliamentary Under Secretary of State (UK Minister for International Trade) inaugurated M.A.D.E.

In its filing, M&M said, the primary objective of M.A.D.E, which forms part of the Mahindra Global Design Network that includes the Mahindra India Design Studio in Mumbai, is to conceive and create all future Mahindra EVs and advanced vehicle concepts.

Also, M.A.D.E is equipped with state-of-the-art design tools, enabling it to handle end-to-end design activities including conceptualisation, 3D digital and physical modelling, Class-A surfacing, digital visualisation, and Human-Machine Interface (HMI) design.

Further, M&M today has launched five electric sports utility vehicles that are designed in the United Kingdom as part of its plan to expedite its lagging switch to battery-powered cars in India. These new SUVs are going to be sold under two brands namely 'XUV and BE'.

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