New Delhi: Mahindra & Mahindra (M&M) and Skoda Auto Volkswagen India Private Limited (SAVWIPL) are reportedly close to forming a joint venture (JV) in India. The two automakers are expected to meet in Mumbai soon to finalise key elements such as product development and manufacturing strategies.
While no formal agreement has been reached, Mahindra has confirmed ongoing discussions with the Volkswagen Group. The potential JV would involve sharing vehicle platforms and technologies, though current sedans and SUVs from Skoda and Volkswagen, along with luxury brands like Audi and Porsche, would remain outside the agreement.
Skoda Volkswagen is also considering divesting 50% of its stake to M&M, with estimates valuing the deal between $800 million and $1 billion. If successful, M&M will gain access to Skoda Volkswagen’s 300,000-unit manufacturing capacity. This collaboration could enhance Mahindra’s production capabilities and offer cost advantages to both parties. However, the focus will remain on internal combustion engine (ICE) models and electric vehicles (EVs) in India’s expanding automotive market.
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