Auto Supply: Automotive maker Mahindra and Mahindra on February 16 informed that it has signed a supply agreement with German car manufacturer Volkswagen.

As part of the agreement, the automakers will equip a certain range of its electric platform Inglo with e-components of Volkswagen's MEB battery module and unified cells.

Meanwhile, the auto majors will also continue to explore potential opportunities for collaboration in India and e-mobility.

This deal will make the Mumbai-headquartered firm the first external partner to use the unified cell concept, which constitutes as the core element of Volkswagen's battery strategy.

The supply agreement will run for several years with a total output of close to 50 GWH.

The two companies were evaluating further opportunities for collaboration, the statement added.

Volkswagen has developed a modular, open vehicle platform for EVs, called MEB, which is used to build its cars and those of other group companies like Skoda and Audi. This also allows Volkswagen to be a supplier of e-technology and parts to other automakers.

The supply agreement was the first of its kind for Volkswagen, but the carmaker said last September it was in talks with other players about similar deals, including manufacturers of cars with combustion engines in Asia who were considering producing cars for the European market via a Volkswagen collaboration.

(With Reuters Inputs)