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  1. Mahindra & Mahindra hits life high, here is why

Mahindra & Mahindra hits life high, here is why

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2 min read • Updated: February 16, 2024, 12:59 PM

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M&M and VW sign supply agreement on unified battery concept.

M&M scales record high

Indian automobile manufacturer Mahindra & Mahindra (M&M) and German car manufacturer Volkswagen have come together to sign a supply agreement on components of Volkswagen MEB platform to M&M’s INGLO platform. The deal covers to supply certain parts of electric components as well as unified cells. The deal is a next step in deepening collaboration between two manufacturers to develop e-mobility solutions together which was started in 2022 with partnering agreement & term sheet.

The partnership will be first of its kind for Volkswagen where they will be partnering with external manufacturer to use its groundbreaking unified cell concept for its battery strategy. The exchange filing said, the partnership will go on for several years and will have total volume of 50GWh over lifetime. M&M with its new purpose electric-built electric platform INGLO, wants to launch 5 electric SUVs starting December 2024.

India is one of the largest automobile markets in the world with more than 5 billion vehicles sold each year. In the year 2023, 81,000 vehicles were sold in India which is 114% higher than 2022.The electrification of passenger car segments is expected to gain significant traction in India in coming years. Considering this the unified battery cell strategy will prove to be a game changer in terms of competition amongst the manufacturers.Benefits of unified cell concept are huge as they can reduce the cost of battery by 50%, making the EV’s more competitive.

Post the announcement of agreement Shares of Mahindra & Mahindra touched a lifetime high of ₹1,864 and currently trading at ₹1,843 (+4.4%).