Mumbai: Mahindra is in advanced discussions to acquire a 50% stake in Skoda Auto Volkswagen India, with a deal likely valued between USD 800 million and USD 1 billion. Sources report that both companies are nearing the signing of a Memorandum of Understanding (MoU), outlining a potential partnership that would grant Mahindra access to Skoda Auto VW’s global technology and manufacturing capabilities.
The deal is expected to bring Mahindra additional production capacity and integration into the Volkswagen Group’s vehicle architecture. In return, Skoda Auto Volkswagen will gain access to Mahindra’s lower-cost vehicle platforms, including the New Flexible Architecture (NFA), designed for both internal combustion engine (ICE) and electric vehicle (EV) models.
Tough negotiations have led to a reduction in the deal’s valuation, initially set at USD 2 billion. Mahindra’s investment will likely be a mix of cash and non-cash contributions, aimed at expanding production capacity at Chakan. The agreement could impact upcoming models like the Kushaq and Taigun, as the companies explore using Mahindra’s NFA for future vehicles.
Both companies have yet to officially comment, but industry experts see the deal as a strategic move for Skoda Auto Volkswagen to improve its position in India’s growing EV market.
