Volkswagen and Mahindra & Mahindra (M&M) have inked an agreement to explore the usage of modular electric drive matrix (MEB) components in the latter's new "Born Electric Platform."

M&M plans to include MEB electric components such as electric motors, battery system components, and battery cells in its Born Electric Platform, according to a press release issued on Thursday. It is expected that the binding supply contract will be completed by the end of 2022.

The MEB electric platform and its components enable automakers to swiftly and cost-effectively expand their electrified vehicle line.

"With Mahindra, we want to make a significant contribution to India's electrification, a huge automotive market with enormous growth potential and high relevance for climate protection," said Thomas Schmall, Volkswagen Group Board of Management member for Technology and CEO of Volkswagen Group Components. He said that MEB is both technologically cutting-edge and cost-effective, and that it is rapidly becoming into the dominant open platform for e-mobility, creating enormous volume and economies of scale.

India is one of the top five automotive markets in the world, producing about 3 million automobiles per year, M&M said. 

The market is predicted to increase to 5 million vehicles by 2030, with diesel and petrol engines dominating the market thus far, it said adding that  industry experts predict that by 2030, more than half of all new vehicles will be entirely electric.

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