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Car Makers Sign Deal to Produce Electric Commercial Vehicles

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MOU is primarily aimed at global markets with current global volume estimated over time at 200,000- 250,000 units. [ Photo / Courtesy ]
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Mumbai/Tel Aviv

Mahindra & Mahindra, part of $19.4 billion Mahindra Group, and REE Automotive on 26th August 2020 signed a memorandum of understanding (MOU) to explore the development and manufacturing of electric commercial vehicles for global markets.

Such a strategic collaboration will leverage REE’s revolutionary electric vehicle corner module and platform technology of integrating powertrain, suspension and steering components in the arch of a vehicle wheel.

This coupled with Mahindra’s well-established vehicle design, engineering, sourcing capability and manufacturing assets, is set to be a win-win strategic partnership for both companies.

The partnership will support REE’s global customer need for 200,000-250,000 electric commercial vehicle units over a few years, including potential Mahindra’s domestic and international volumes. Production would be scaled further to support additional volume in the global as well as Indian market.

“Our collaboration with REE has the potential to bring a disruptive approach to a new age of vehicles capitalizing on our respective strengths,” said Rajesh Jejurikar, Executive Director (Auto and Farm Sectors), Mahindra & Mahindra.

“The competitive advantages of REE’s corner modular architecture with our experience in conventional vehicle system design, engineering, sourcing ecosystem and significant production capacity, provides a perfect match to deliver exciting zero emission vehicles, including autonomous vehicles, that can meet customer needs as never before.”

REE’s architecture will enhance Mahindra’s capabilities in the electric vehicle sector. REE will leverage Mahindra’s global presence and its unique volume flexibility capability as well as its engineering and product development expertise.

REE’s technology is designed for current and future e-mobility applications.

“We are excited to partner with Mahindra to explore synergies that will allow us to address our customers’ needs based on Mahindra’s footprint and capabilities. Mahindra’s unique cost structure, design and engineering capabilities and volume flexibility will be key to our ability to address the majority of the commercial EV market with both large volume vehicles as well as more targeted mission-specific vehicles,” said Daniel Barel, REE Co-founder and Chief Executive Officer.

See Also >> Renault Trucks Zooms into Kenyan Market

“Having a partner like Mahindra joining our growing OEM partners network will allow us to drive our EV technology faster and at scale”.

REE’s transformational technology is designed for current and future e-mobility applications, including autonomous vehicles, and offers significant benefits in terms of weight, space and total body design flexibility.

The scalability of the platform makes it ideal for any form of electric vehicle such as commercial vehicles, mid-duty delivery trucks, last-mile delivery, passenger cars, taxis and shuttles.

Next Read >> Kenyan Insurance Firm Blacklists 25 Vehicle Brands

Written by
BT Correspondent

editor [at] businesstoday.co.ke

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