Reports had claimed that Mahindra is eager to buy 50 per cent stake in Skoda Auto Volkswagen India, a group which includes carmakers like Skoda, Volks
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Mahindra has issued a clarification after media reports claimed that the carmaker is eager to buy stake in Skoda Auto Volkswagen India group. Mahindra issued a statement stating the report claiming its plans to buy 50 per cent stake in Europe’s largest car manufacturer group operating in India as ‘speculation’. However, the carmaker did not specifically deny report that talks about a possible merger is underway. The report claims that the two entities are currently negotiating on a $1-billion (roughly converted to about 8,358 crore) deal.
Currently, Mahindra and Skoda Auto Volkswagen India are involved in a partnership on electric vehicles. In February this year, Mahindra had signed a deal with the German auto giant to get equipment of the upcoming five electric vehicles with MEB components. The deal includes supply agreement for EV components meant for Mahindra’s newly-developed electric car platform INGLO, supply of certain electrical components and unified cells.
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Mahindra’s statement on reports of merger
Reacting to the media report, Mahindra issued a statement during exchange filing. Terming the report as speculation, Mahindra said that there has been no concrete outcomes yet on the possible merger. The statement issued by the carmaker reads, “In case there are any concrete outcomes…appropriate disclosures will be made in a timely manner.” The report claims that Mahindra is insistent on buying 50 per cent stake, about as much as it had in Ford India earlier. The report also claims that Mahindra may not agree to the deal if the stake portion is anything less than that.
Despite refuting any immediate chance of a merger, Mahindra did not rule out the possibility with Skoda Auto Volkswagen India in near future. It said, “Mahindra & Mahindra and VW Group continue to explore multiple opportunities to expand the collaboration potential.”
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Mahindra’s has developed its new INGLO platform specifically for electric vehicles. It has showcased five concept EVs so far based on the same platform. The first of these Mahindra EVs is expected to be launched in India early next year. The platform offers batteries ranging between 60 kWh and 80 kWh capacity and fast-charging of up to 80 per cent in less than 30 minutes.
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First Published Date: 25 Sep 2024, 09:38 AM IST