Mahindra electric cars to use Chinese BYD batteries as Volkswagen deal runs late

The Indian automotive giant has partnered with China’s BYD to power its new electric-car range, as a deal to use VW batteries and electric motors runs behind schedule.

Upcoming electric vehicles from Indian automotive giant Mahindra – which sells a range of family SUVs, 4WDs and utes in Australia – are poised to use battery technology from Chinese electric-car specialist BYD.

As reported by publication Autocar Professional India, plans to power Mahindra’s upcoming electric-car range with Volkswagen motors and battery packs has “run into delays” and fallen well behind schedule.

To fill the gap – and launch the first of its new electric vehicles on schedule in 2024 – the Indian car giant has leant on BYD, the world’s second-biggest seller of electric vehicles behind Tesla, for battery packs to power more models.

MORE: Indian car giant Mahindra to launch two new electric vehicles in Australia

Electric motors are now planned to be built by French company Valeo, which supplies parts for other global car makers such as Renault.

At least two of the six new Mahindra electric vehicles set for Indian showrooms are planned for release in Australia, the company has previously said.

According to Autocar Professional, Mahindra always planned to use BYD batteries in an 80kWh capacity – in addition to a 60kWh Volkswagen battery.

However it will now reportedly tap BYD for both battery capacities as the German car giant’s technology would not be ready until 2026 or 2027 – up to three years later than the December 2024 launch planned for Mahindra’s first next-generation electric car, the XUV.e8 SUV.

The Indian report says Mahindra was waiting for the next generation of Volkswagen’s batteries – which use what is called a ‘unified cell’ design, claimed to deliver higher energy density, longer range and quicker charging.

These are lithium-iron-phosphate batteries – a chemistry that is becoming increasingly popular in more affordable electric vehicles as they are cheaper to produce than regular lithium-ion (nickel-manganese-cobalt) batteries.

Models due at a later date will switch to Volkswagen electric motors and battery packs across the range.

According to insider sources cited by Autocar Professional, “dealing with VW has been more challenging than Mahindra anticipated”, with “lots of paperwork involved.”

As reported by Autocar India, the first Mahindra electric car in the new range will be the XUV.e8, due in December 2024 – followed by the a sportier coupe-styled version, the XUV.e9 in April 2025, ahead of the small BE.05 in October 2025, and mid-size BE.07 in April 2026.

Electric versions of the Jeep Wrangler-look-a-like Thar – and larger Scorpio – off-road electric SUVs are planned at a later date, underpinned by the same car-derived electric-vehicle platform, rather than the ladder frame of the petrol versions.

The Indian website reports the XUV electric models will be powered by a 170kW rear electric motor from Valeo, with the BYD batteries only.

The BE models are said to offer a choice of single-motor 210kW rear-wheel-drive, and dual-motor, circa-290kW (210kW rear motor and 80kW front motor) all-wheel-drive configurations, with the availability of the VW battery.

Mahindra is the latest car giant to use batteries from BYD (Build Your Dreams), following Tesla with a version of the Model Y SUV manufactured in Germany.

It has also worked with Japan’s Toyota to develop a new electric sedan exclusive to the Chinese market, and supplied batteries to South Korea’s SsangYong (now renamed KG).

Meanwhile Volkswagen has also partnered with Ford to use the German manufacturer’s MEB electric-car platform – including batteries and electric motors – for two new electric SUVs for Europe.

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