Mahindra Clarifies On Reports Of Stake Purchase In Volkswagen’s India Unit

Mahindra & Mahindra Ltd. has clarified its stand on reports suggesting that India's largest SUV maker by revenue is looking to acquire a stake in a local unit of Volkswagen AG.

“Mahindra & Mahindra and VW Group continue to explore multiple opportunities to expand the collaboration potential,” according to an exchange filing on Monday. “In case there are any concrete outcomes…appropriate disclosures will be made in a timely manner.”

On Monday, Autocar Professional reported that the senior management of Skoda Auto are currently in India for an important meeting to define the contours of an agreement which would see M&M acquire a stake in Skoda Auto Volkswagen India—the local unit of Europe's largest carmaker. M&M, according to the report, is keen on acquiring a 50% at a valuation of $800 million to $1 billion. M&M has insisted on a 50% stake, similar to their former agreement with Ford Motor Co. Otherwise, the deal is a non-starter.

To be sure, M&M and VW are already in an alliance for electric mobility.

In February 2024, the two automakers signed a supply agreement for EV components that will see the Scorpio maker equip a certain range of its so-called INGLO platform with the electrickery from Volkswagen's MEB chassis. 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 SUVs that will break cover in early 2025.

M&M and Volkswagen had first entered into a partnership in 2022 to use the German's EV components like motors, battery systems and cells. This multi-year supply agreement makes M&M VW's first external partner to use the unified cell technology.