Mahindra & Skoda-VW fail to reach consensus over JV terms

Mahindra & Skoda Auto VW India have already signed a series of MoUs over the past few months.

According to a media report, Mahindra and Skoda Auto VW India have failed to reach a consensus over the terms of a proposed joint venture.

Mahindra & Mahindra and Skoda Auto VW India have already signed a series of nonbinding memoranda of understanding (MoUs) over the past few months. The report states that a few more were supposed to be signed at the end of this month. However, the discussions seem to have slowed down.

The VW Group’s India business is looking for a partner to share development costs and risks. But, as per the latest reports, Mahindra is reluctant to compromise, given its stronger position in the domestic market.

It appears that Mahindra, with its past experience of negotiating a joint venture with Ford, is playing it safe this time. That being said, the VW Group is said to have agreed to share components of the MEB platform with Mahindra.

There has been no official word from either of the parties regarding the current status of the negotiations.

Source: ET Auto