Volkswagen plans to supply electric vehicle components and battery components to Indian automaker Mahindra & Mahindra to make a breakthrough in India's emerging green transportation market.。

Mahindra said in a document that the company will assemble some of the planned five electric sports utility vehicles, which are expected to be launched in December, will use components from the Volkswagen MEB platform and unified battery components.。

Mahindra said the supply agreement, which was signed in 2022 and will be implemented over the next few years, has a total capacity of about 50 GWh.。According to the document, the two sides will continue to explore further cooperation opportunities and strengthen their position in the field of electric mobility in India.。

Mahindra, as one of the top seven brands in the Indian car market, has a significant influence on local car sales in India, and some analysts believe that if Volkswagen can seize India, the world's third largest car market, the revenue behind it is considerable.。However, in view of the current size of India's electric vehicle market is still small, charging stations are difficult to popularize, short-term demand may be difficult to have a breakthrough growth, but still optimistic about its long-term development trend, the company as a whole is a good。

Global automakers are increasingly interested in India's emerging electric vehicle market, while in Europe and the United States, growth in demand for battery-powered transportation has slowed in recent years.。BMW expects electric vehicles to account for 25% of its sales in India by 2025, up from 10% last year.。Musk has previously mentioned that Tesla is likely to make a "significant investment" in India.。

For Volkswagen, the focus in India this year will be on electric vehicles。Ashesh Gupta, brand director of the company's South Asian country passenger car division, said earlier this month that Volkswagen would import fully assembled electric vehicles to India at this stage, and assemble more high-end electric vehicles later。He said he expects to wait until around 2026 before making electric cars locally.。

Although India's electric car market is growing, its size is still small。Price-conscious consumers are reluctant to buy expensive electric cars without subsidies, especially given the limited supply of charging stations。According to data from Bloomberg NEF, electric vehicles in India accounted for only 2% of total passenger car sales last year.3%。

Volkswagen sold 8,265 cars in India last month, down 11 percent from a year earlier, according to the Association of Indian Automobile Manufacturers.。