Published - September 4th, 2023 @ 3:10 PM (GMT+2)
‍

Volkswagen is making strategic moves to secure its position in the rapidly evolving automotive industry. The German automaker is not only preparing for Europe's impending 2035 ban on fossil fuel cars but is also in advanced discussions with India's Mahindra & Mahindra for a significant collaboration on electric vehicle (EV) technology.

Advanced Talks with Mahindra:
‍

Volkswagen is in the final stages of talks with Mahindra & Mahindra, a leading Indian automaker, to share key components of its Modular Electric Drive Matrix (MEB) platform. The MEB is an open platform developed by Volkswagen to build electric vehicles, and it is already being used by other group companies like Skoda and Audi. Mahindra aims to utilize core MEB components, including the e-drive and unit cells, for its upcoming electric models.

Expanding Supplier Role:
‍

The collaboration with Mahindra is part of Volkswagen's broader strategy to become a supplier of electric technology and components to other automakers. The two companies have already signed a term sheet, and Volkswagen is in discussions with other manufacturers for similar collaborations, particularly in Asia.

‍

Ready for Europe's 2035 Ban:‍

‍
On the European front, Volkswagen is gearing up for the 2035 ban on new fossil fuel cars. The company's CEO, Oliver Blume, announced at Munich's IAA mobility show that they are well-prepared for the transition. Through its partnerships in China, Volkswagen plans to significantly reduce battery costs by 50% at the cell level.

Competitive Edge in Europe:

‍
European automakers are facing stiff competition from Chinese EV manufacturers who are offering cheaper and more consumer-friendly models. However, Blume remains optimistic about Volkswagen's prospects, stating that their expertise in car manufacturing gives them a competitive edge.

By making these strategic moves, Volkswagen is positioning itself as a leader in the electric vehicle market, ready to meet the challenges of regulatory changes and increasing competition.

‍

‍
The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.
‍
‍