Shares of Mahindra & Mahindra Ltd. ended at record high on Tuesday after the automaker expanded cooperation with Germany's Volkswagen Group for supplying components for its new electric SUVs.
The maker of Thar and Scorpio SUVs has signed a term sheet with the German carmaker for the supply of modular electric drive matrix electric components for M&M's electric platform INGLO.
The deal includes the supply of over one million units, including equipment for five all-electric SUVs, with MEB components.
M&M and VW will also explore other opportunities for collaboration, including e-mobility, vehicle projects, charging and energy solutions and cell manufacturing. The final supply agreement is likely to be completed by end of 2022.
The announcement comes after Mahindra showcased its new electric SUV family at the Mahindra Born EV vision unveil event in the UK on Aug. 15. Anand Mahindra, the group chairman, said that the time was ripe to enter the electric four-wheeler space and unveiled five electric SUVs. The company intends to introduce first of the five e-SUVs towards the end of 2024, starting from Indian market.
Shares of the carmaker ended at record high of Rs 1,288.40 apiece on Tuesday.
Of the 46 analysts tracking the company, 40 maintain 'buy', four suggest 'hold' and two recommend 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 6.2%.
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