Volkswagen in Talks With Mahindra for Joint Venture

German car maker Volkswagen (VW) is reportedly in preliminary talks with Mahindra and Mahindra (M&M) to scale up their supply agreement on components for a joint venture.

In February, the two companies signed a supply agreement covering components of VW's vehicle platform for M&M's purpose-built electric platform called INGLO. The deal includes certain electric components and unified cells, with the first electric SUV on the INGLO platform set to launch later this year.

It is to be noted that, as per media reports, the Volkswagen Group is currently in talks to sell its stake in its India business to a local partner. Despite having invested over $2 billion USD, Volkswagen has faced challenges in the Indian market, which is highly cost-sensitive.

The German carmaker is now focusing on developing new products for India, where "over-engineered" vehicles have struggled to gain traction. Klaus Zellmer, global CEO of Skoda Auto, emphasized the importance of finding the right partner for a true collaboration, including shared engineering, sales, and procurement competence. While Zellmer did not reveal the potential partner, Mahindra is rumored to be a front-runner.

VW's India business has faced challenges due to premium pricing and poor brand recall, while M&M has well-defined plans for the electric vehicle segment. The joint venture could be a strategic move for both companies as they explore opportunities in the Indian market.

Besides the potential joint venture with Mahindra and Mahindra in India, Volkswagen has been actively engaged in other collaborations globally. Volkswagen recently resolved to invest initially $1 billion USD in Rivian Automotive, Inc., and intends to establish a joint venture in the area of E/E architecture for electric vehicles. The joint venture would allow Volkswagen access to Rivian's current E/E architecture technology. 

In China, Volkswagen has three joint ventures — SAIC Volkswagen, FWA-Volkswagen, and JAC Volkswagen. These ventures produce Volkswagen Group brand models for the Chinese market. 

Volkswagen has also partnered with companies like Umicore, 24M Technologies, and Vulcan Energy Resources to enhance electric vehicle production and technology.

Additionally, Volkswagen plans to take a 60% stake in a $2 billion tech joint venture with China's Horizon Robotics to further develop software and technology.

Mahindra to be the First External Partner to Use Volkswagen's Groundbreaking Unified Cell Concept

Mahindra Inks MoU with Volkswagen on e-Mobility Collaboration 

• Mahindra will equip a certain range of its electric platform, INGLO with electric components from Volkswagen's MEB and unified cells
• Both companies continue to explore further potential opportunities for collaboration in India in the field of e-mobility

Volkswagen Group and Mahindra & Mahindra Ltd. (M&M) have signed the first supply agreement on components of Volkswagen’s MEB for Mahindra’s purpose-built electric platform INGLO, taking a definitive step further on their joint vision for e-mobility collaboration. The deal covers the supply of certain electric components as well as unified cells. With the agreement, Volkswagen and Mahindra are further deepening their collaboration, which started with a partnering agreement and a term sheet in 2022. Both companies will continue to evaluate the potential expansion of the collaboration.

Mahindra will be the first external partner to use the groundbreaking unified cell concept, the core element of Volkswagen’s battery strategy. The supply agreement will run over several years and have total volume of about 50 GWh over its lifetime. Volkswagen Group and Mahindra aim to strengthen their e-mobility footprint in the Indian automotive market and accelerate electrification in the region.

The Unified Cell concept is Volkswagen Group-owned battery company PowerCo's new “modular” cell design for EV batteries, which is projected to be applicable for 80% of Volkswagen Group vehicles and drastically cut battery cost.

Mahindra plans to launch five all-electric SUVs in India based on its new, purpose-built electric platform, INGLO, starting in December 2024. With more than five million new vehicles per year in 2023, India is one of the largest automotive markets in the world. The electrification of the passenger car segment is expected to gain significant momentum in the coming years. Volkswagen’s MEB platform and its components are used by the Group brands Volkswagen, Audi, Škoda and SEAT/CUPRA as well as external partners like Ford and Mahindra. The partnership with Mahindra is led by Volkswagen Group Technology and its “Platform Business” unit in close cooperation with Škoda Auto Volkswagen India Pvt. Ltd.

About Mahindra

Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 260000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate. The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.

About the Volkswagen Group

The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 115 production facilities in 19 European countries and 10 countries in the Americas, Asia and Africa. With around 676000 employees worldwide. The Group’s vehicles are sold in over 150 countries. With an unrivalled portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalisation and sustainability. In 2022, the total number of vehicles delivered to customers by the Group globally was 8.3 Million (2021: 8.9 million). Group sales revenue in 2022 totaled EUR 279.2 Billion (2021: EUR 250.2 Billion). The operating result before special items in 2022 amounted to EUR 22.5 Billion (2021: EUR 20.0 Billion).

Volkswagen and Avataar.Me Partner with Facebook, Instagram to Offer 1st-of-its-Kind Life-Size 3D Consumer Experiences

Volkswagen has partnered with Avataar.Me, to offer immersive life-size 3D experiences to its social & web consumers. The experiences were brought to life in partnership with Facebook & Instagram during the Auto Expo 2020, where users can digitally discover Volkswagen’s SUVW range on display.

Volkswagen has integrated Avataar.Me’s webAR platform allowing Volkswagen consumers to experience immersive life-size 3D AR discovery of their Auto Expo product range. Avataar.Me’s deep-learning AI platform directly converts 2D images & videos of Volkswagen to life-size 3D experiences.

Facebook & Instagram are media partners to this exciting AR engagement to facilitate reach & discovery to the target audience and drive the desired business outcomes. In a transformative experience, consumers will be able to virtually discover Volkswagen SUVW range on display at Auto Expo. With users creating and sharing their own videos, it drove organic word of mouth amplification to their social circles.

Bishwajeet Samal, Head of Marketing, Volkswagen India, said, “At Volkswagen, we always seek out to make the best of technological advancements. We are determined to showcase our brand and product proposition in an innovative manner. Our partnership with Avataar.Me for the Auto Expo 2020 revealed our vibrant New Volkswagen in an immersive life-size 3D experience. This enabled our audience from across the world to witness New Volkswagen and our SUVW portfolio while staying true to our core of being a People’s car.”

Prasanjeet Dutta Baruah, Vertical Head - Automotive, Tech & Telecom at Facebook India, said, “Facebook and Instagram are platforms where people pursue and share their passions. We have been working closely with industry leaders to enable customized solutions for them. We are thrilled to have been a part of Volkswagen’s Auto Expo 2020 journey by helping them bring alive the event experience on the Facebook family of apps, and taking it beyond the confines of the venue to auto-enthusiasts and Volkswagen lovers across the country."

Sravanth Aluru, CEO & Co-founder, Avataar.Me, said, “Volkswagen is known for its industry leadership, and we are super excited to partner with them, pioneering immersive digital AR experiences for Volkswagen fans. Our AI platform delivers an immersive discovery experience in the comfort of fans’ homes, thereby bridging the online-offline experience gap.”

About the Volkswagen brand:

Volkswagen, a leading carmaker in Europe, sells its broad model range, from the Up! to the Touareg, in more than 150 countries worldwide. The brand, globally, is forging ahead consistently with the further development of automobile production. E-mobility, smart mobility and the digital transformation of the brand are the key strategic topics for the future. In 2019, the brand unveiled its first ever e-mobility offering ID.3 for the European market, based on Volkswagen’s MEB platform. In India, Volkswagen currently offers the Polo, Ameo, Vento and Tiguan.

About Avataar.Me:

Avataar.Me is a 3D AR/AI platform powering marquee digital marketing and commerce leaders globally.
Avataar’s deep-learning AI directly converts 2D photos and videos to life-size 3D, helping brands immerse their consumers in life-size AR visual discovery - from trying an apparel, a shoe, a bag, a sunglass or a lipstick together on yourself, to trying furniture in your living room, to a life-size car in your backyard - we do it all!
Our webAR platform embeds into our brand’s websites/apps to offer plug-and-play AR experiences at scale. We are also partners with Instagram and Facebook to power social AR engagement on brand’s social accounts globally.[caption id="attachment_142202" align="aligncenter" width="1024"] Image - Facebook.com/WE.AugmentedReality[/caption]