Mahindra likely to acquire 50% of Skoda India group — All details

A new report claims that Mahindra and Skoda are in talks to sign an MoU, which will eventually leave Mahindra with 50% stake in Skoda Auto India group. Both brands are likely to benefit from each others’ technologies and vehicle platforms. Read on to know more about Mahindra and Skoda Auto India plans for the future.

Mahindra and Skoda to join hands

If the reports are to be believed, Mahindra is aiming to acquire 50% stake in the Skoda Auto VW India group — the Indian arm of Europe’s biggest carmaker group. The valuation of the SAVWIPL group is said to hover in the ballpark of USD 800 million - USD 1 billion, half of which could go to Mahindra in return to the collaboration efforts, platform sharing and investments.

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Speaking about the collaboration, Mahindra will gain access to increased production capacity through SAVWIPL’s Aurangabad manufacturing facility and also access to Skoda Auto’s global technology ecosystem. Skoda and Volkswagen, on the other hand, will get access to Mahindra’s new low-cost vehicle architectures for both ICE and EV propulsion systems. It is worth mentioning that if the JV between SAVWIPL and M&M comes into form, premium brands under the SAVWIPL group like Audi, Porsche and Lamborghini will be moved to a separate organisation outside of the JV.

Platform sharing

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It’s no secret that Mahindra will use several components from Volkswagen’s MEB platform for its range of upcoming electric SUVs under the BE and XUV model range. However, if the JV comes true to life, we can expect further collaborations in the form of platform sharing. In the future, we can expect future Skoda and Volkswagen models to share their platforms with Mahindra cars. On the other hand, Mahindra could also look at offerings based on VW’s CMP architecture, which will help the SAVWIPL group. 

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