Global automotive supplier Valeo has inked a substantial contract worth “almost one billion US dollars” with leading Indian car manufacturer Mahindra. The deal involves the supply of electric drives integral to Mahindra's ambitious “Born Electric” SUVs, signaling a shift away from the initially planned collaboration with Volkswagen.
The electric drivetrain commissioned by Mahindra encompasses an array of components, including an electric motor, inverter, transmission, and bidirectional power electronics. While specific details regarding the system remain undisclosed, Valeo has confirmed that production will take place in close proximity to Mahindra's facility in Pune, Maharashtra.
Mahindra's decision to partner with Valeo stems from anticipated delays in the supply of Modular Electric Drive Kit (MEB) components from Volkswagen, a collaboration originally set to equip Mahindra's Inglo electric vehicle platform. In August, Mahindra, cognizant of potential setbacks, opted for the agile and reliable solutions offered by Valeo to meet its electrification goals.
Xavier Dupont, President of the Valeo Powertrain Systems Business Group, emphasized that the locally developed solutions would enable Mahindra to offer higher voltage and longer-range electric vehicles to the Indian market. The partnership is positioned as a significant stride for Valeo in the burgeoning Indian electric vehicle (EV) sector, with plans for investments to localize production in India.
Mahindra's “Born Electric” vehicles, built on the Inglo EV platform, will rely on Valeo's electric drives, while Mahindra retains responsibility for the chassis, bodywork, interior, and infotainment. The collaboration is aligned with Mahindra's commitment to providing sustainable and innovative mobility solutions globally.
The shift away from Volkswagen's MEB components involves Mahindra sourcing battery cells from BYD and electric motors from Valeo. The decision is attributed to potential delays in Volkswagen's delivery of battery cells and electric motors, now projected for 2026 or 2027.
The first set of electric SUVs under Mahindra's “Born Electric” initiative, including models XUV.e8 and XUV.e9, is slated for launch between 2024 and 2026, addressing both domestic and international markets. The move underscores Mahindra's adaptability and commitment to advancing its EV aspirations amid the evolving landscape of automotive collaborations and supply chain dynamics.