The cooperation intends to have a volume of more than one million units over its lifetime, VW said in a statement.
“The partnership not only demonstrates that our platform business is highly competitive, but also that the MEB is well on track to become one of the leading open platforms for e-mobility,” Volkswagen management board member Thomas Schmall said.
Schmall declined to provide firm numbers but said that the agreement would translate into a significant operating result that he said would be comparable to a medium-sized brand within the VW Group.
Mahindra’s VW-based SUVs will be called the XUV.e8, XUV.e9, BE.05, BE.07 and the BE.09. The first e-SUV will be launched by the end of 2024 for the Indian market while other three should be out by 2026, Mahindra said.
Mahindra has said it expects electric models to make up between 20 percent and 30 percent of its total SUV sales by March 2027.
The company sells some of India’s most popular combustion-engine SUVs, including the Scorpio and Thar.
Producing a range of clean vehicles is crucial for Mahindra to break the dominance of rival Tata Motors in India’s nascent electric car market.