Ford And Mahindra Form Joint Venture In India For Emerging Markets

Ford and Mahindra will form a new joint venture in India to develop models under both brands for emerging markets around the world.

This marks a new era for the collaboration of the two car makers, with Mahindra owning 51 percent and Ford the remaining 49 percent of the new venture that’s valued at $275 million.

All of Ford’s India operations, including personnel and its assembly plants in Chennai and Sanand, will be transferred under the roof of the new entity. Ford will keep its engine factory in Sanand, as well as their Global Business Services unit, Ford Credit and Ford Smart Mobility.

Also Read: Ford And Mahindra To Develop A New Mid-Sized SUV For Emerging Markets

The two automakers first formed a strategic alliance in 2017, with the new joint venture expected to be fully operational by mid-2020. Operations will be managed by Mahindra, but the governing body will be equally composed of representatives of both companies

“We need to evolve with new and faster ways of not only delighting our customers around the world but also solving their very different needs. Strong alliances like this play a crucial role in assuring we continue to achieve our vision while at the same time staying competitive and delivering value to our global stakeholders,” said Jim Hackett, Ford president and CEO.

The new joint venture aims to grow the Ford brand in India, as well as export its product to Ford’s global markets. The first models are expected to be three new SUVs that will carry Ford badges, starting with a mid-size model that’ll use a platform and powertrain from Mahindra.

Ford and Mahindra will also focus on the development of electric vehicles for emerging markets and Mahindra will also get to use Ford’s distribution network in them.

“Emerging economies including India are expected to account for one in three future vehicle sales,” said Dr. Pawan Goenka, managing director, Mahindra & Mahindra Limited. “The joint venture will have a distinct product portfolio with shared platforms and powertrains, the newest technology, high quality and engineering standards from both Mahindra and Ford, at optimized costs.”

Ford Endeavour, EcoSport pictured