Mahindra & Mahindra (M&M) on Wednesday said it has inked a pact with Tel Aviv-based REE Automotive to explore production of electric commercial vehicles.
The Mumbai-based firm has signed a memorandum of understanding (MOU) with the startup to explore development and manufacturing of electric commercial vehicles for global markets, M&M said in a statement.
The 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, it added.
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, M&M noted.
The partnership will support REE's global customer need for 2-2.5 lakh electric commercial vehicle units over a few years, including any volumes for Mahindra's domestic and international markets, it added.
Production would be scaled further to support additional volume in the global as well as Indian market, the automaker said.
"Our collaboration with REE has the potential to bring a disruptive approach to a new age of vehicles capitalising on our respective strengths," M&M Executive Director (Auto and Farm Sectors) Rajesh Jejurikar said.
The competitive advantages of REE's corner modular architecture with M&M's experience in conventional vehicle system design, engineering, sourcing ecosystem and significant production capacity, provides a perfect match to deliver
zero emission vehicles, including autonomous vehicles, that can meet customer needs as never before, he added.
REE Co-founder and Chief Executive Officer Daniel Barel said Mahindra's unique cost structure, design and engineering capabilities and volume flexibility will be key to the company's ability to address the majority of the commercial EV market with both large volume vehicles as well as more targeted mission-specific vehicles.
"Having a partner like Mahindra joining our growing OEM partners network will allow us to drive our EV technology faster and at scale," he added.