Mahindra is in advanced talks to acquire a 50% stake in Skoda Auto VW India, with a valuation between $800 million and $1 billion. If finalized, this deal would give Mahindra access to Skoda’s vehicle architectures and advanced technologies, while Skoda Auto VW India would benefit from Mahindra’s low-cost platforms for future internal combustion engine (ICE) and electric vehicle (EV) models.
Reports suggest Mahindra could invest Rs 4,000-5,000 crore and share its New Flexible Architecture (NFA) platform, which would streamline development for both companies.The collaboration may lead to the next-generation Kushaq and Taigun SUVs using Volkswagen Group engines but built on Mahindra’s NFA platform, reducing production costs.
Additionally, this deal could simplify Skoda Auto VW India’s future product lineup by utilizing Mahindra’s NFA for ICE models and the CMP platform for locally produced EVs. However, the impact on the development of future models like the Slavia and Virtus remains uncertain.