DNA TV Show: As gold prices hit all-time high, should we invest in yellow metal or shares?
'Why pick up BCCI, settle with them only': SC asks Byju's on Rs 15000 crore debt
NASA’s rover discovers unusual 'Zebra-stripped' rock on...
Mpox outbreak: Centre issues advisory to prevent spread of virus, says, 'minimize risk of...'
Ratan Tata's company inks Rs 91000 crore pact with Taiwan firm to build India's first...
Mukesh Ambani's Reliance teams up with Swedish company, will now sell...
After reducing debt, Anil Ambani's Reliance Infra to now take major decision on...
Good news for these workers, ahead of festive season, Centre increases...
Mukesh Ambani's children, Isha, Akash Ambani shine in Hurun India's list of...
Virat Kohli doesn't want Rishabh Pant in RCB? DC captain lambasts rumors ahead of IPL 2025 auction
IND vs BAN, 2nd Test Dream11 prediction: Fantasy cricket tips for India vs Bangladesh match
Want to time travel? Here's how Google can help you revisit Earth 80 years ago
Bilkis Bano case: SC rejects Gujarat govt's plea seeking review of verdict over certain observations
Mohan Babu robbed of Rs 10 lakh cash from his Hyderabad home, police arrests domestic help
High-Precision Stamping: Key Steps To Ensure Quality And Accuracy
Expert Skincare Tips For A Festive Glow: Dr Shivani Mane’s Guide To Radiant Skin
The Evolving Job Market and Career Choices
Meet Bollywood actress who rejected Shah Rukh Khan’s Kuch Kuch Hota Hai, had her own TV series
Good news for Delhi-NCR! Namo Bharat Metro to pass from 22 stations to reach...
Bihar: 46 people, including 37 children, drown during Jivitputrika festival
Scientists find Earth-like planet in distant solar system, nearly 2 times size of...
Karnataka withdraws general consent to CBI to probe cases in state amid MUDA case row
Sarfira OTT release: When, where to watch Akshay Kumar's remake of Soorarai Pottru
Navya Naveli Nanda breaks her silence on handling social media trolls after joining IIM Ahmedabad
Punjab Kings part ways with Trevor Bayliss, Sanjay Bangar ahead of IPL 2025
Clarifying speculation surrounding Raveena Tandon's involvement in Jatadhara
Ahead of Reliance Disney merger, Mukesh Ambani makes new move, Nita Ambani, son Akash are now...
DS Creations News joins as media partner for Maesha Soi's debut film directed by Dinesh Soi
Meet 12th class student who became DM for 2 hours, know what she did after taking over
The Confluence of Innovation, Data, and Technology: Perceptions from Stakeholders
This mysterious 500 diamond necklace with Indian connection will be auctioned in...
Shakib Al Hasan announces T20I retirement, says Kanpur Test against India will be his last if...
This stock of Ratan Tata has seen huge growth, price has jumped more than 4% in just one day
Watch: Bihar man performs risky push-ups on moving bike to film reel, police reacts to viral video
Paracetamol, Antacid, Pan D among 53 drugs to fail regulator's quality test
'I just could not believe...': Indian chess star Vantika Agarwal on meeting with PM Modi
'Why should I resign?', asks Karnataka CM Siddaramaiah amid protests by BJP leaders
SHOCKING! Viral video shows man doing risky stunt on moving bike, here's what happened next
Work-life balance: This country has set global standard with 24.7-hour work-week
After UP, Congress-ruled Himachal Pradesh makes it mandatory for…
'Certificate can be issued to Kangana Ranaut's Emergency if...': CBFC to Bombay HC
Mumbai court sentences Sanjay Raut to 15 days imprisonment in defamation case
Mumbai rains: 'So cute': Viral video shows giant lizard roaming in housing society, WATCH
Meet boy, UPSC aspirant who underwent 7 surgeries, won Rs 10000000 but failed to...
This millionaire bought private island for $50 million so that his wife can...
Meet Tina Dabi's batchmate who debunked IAS myth, studied at night to clear UPSC exam with AIR...
After Dolly Chaiwala's tea, Bill Gates now spotted eating this street food at…
NASA Alert: 38-feet tractor-sized asteroid approaching Earth on this day at massive speed of...
Malayalam actor Edavela Babu arrested in sexual assault case, later released on bail
Big update on MS Dhoni amid IPL 2025 retention rules, CSK CEO says, 'I have no idea...'
Sonu Nigam says AI is threat to 'average' singers, musicians: 'It is being used to...'
Bizzare! Hippo drags 63-year-old to river bottom, know what happened next
Meet Bhavana Motiwala, Anil Ambani's wife Tina Ambani's lesser-known sister, who is Anil Kapoor's...
Watch: Women gather in huge numbers to drink rice liquor during festival in Nepal, know why the hype
'If you were to die…': This company's head designer's advice on work ethic sparks internet debate
World's most expensive condom auctioned for Rs 44000, it is made of...
India's first bullet train to come from..., check top speed, distance, route
'Raised the plan of victory...': Ukrainian President Zelenskyy meets his US counterpart Biden
AUTOMOBILE
The European carmaker has failed to achieve sales targets in India and is now seeking to find a way of sharing risks of investment while at the same time improving profitability
TRENDING NOW
In a major development that may redefine the automotive market in India, Mahindra & Mahindra is said to have entered into late stage talks to acquire a 50% stake in Skoda Auto Volkswagen India. Estimated at between Rs 66,00,00,00,000 (USD 800 million) and Rs 83,00,00,00,000 (USD 1 billion) this potential partnership is expected to be sealed shortly with the signing of a Memorandum of Understanding (MoU).
The deal is being struck as both firms look to strengthen their standing in India’s fast-growing market for electric vehicles (EVs). Mahindra wants to tap into Skoda Auto Volkswagen’s global technology and production line, while Skoda expects to gain from Mahindra’s low-cost vehicle platforms like New Flexible Architecture (NFA) that can accommodate both internal combustion engine (ICE) and Electric vehicles (EVs).
Reports suggests that talks have been difficult, which has seen the value placed on the company lowered from the earlier Rs 1,67,00,00,00,000 (USD 2 billion). It is envisaged that Mahindra’s investment would be both cash and non-cash, with the goal of increasing production capacity at Chakan. At present, the Skoda Auto Volkswagen India has an installed production capacity of approximately 210,000 automobiles per annum and has the potential to increase this capacity in the future.
This could add a lot of value to Mahindra’s production capacity and once integrated with Skoda, Mahindra could easily produce over one million vehicles per year. In exchange, Skoda will get Mahindra’s lower-cost platforms which would be very useful in creating models such as Kushaq and Taigun.
The European carmaker has failed to achieve sales targets in India and is now seeking to find a way of sharing risks of investment while at the same time improving profitability in a growing competitive market.
In addition, this partnership supports Skoda’s long-term plans to meet new regulations that will be implemented in the future including the Corporate Average Fuel Economy (CAFE) norms for 2028. These regulations will call for capital intensive investment in the EV technologies, which makes it particularly strategic to partner with a local player like Mahindra.