In a major announce meant coming for the Indian Auto industry the Mahindra Group and Ford Motor have signed an MoU on Thursday where in they will come together to develop mid-size and compact SUVs, and a small electric vehicle.
The products developed under this coming together will be meant for the Indian market and also for other emerging markets. Under this MoU pact there will be a development of a mid-size SUV that would be developed using the Mahindra platform. The jointly developed product would be branded by both the companies separately and sold by both companies individually.
Furthermore Mahindra and Ford have also agreed to co-develop an electric vehicle. The two companies will share powertrain portfolios where Mahindra will supply Ford its powertrains to help extend Ford’s product range. It may be recalled that the two companies had first announced that they are exploring a strategic alliance in September 2017.
Mahindra on the other hand will benefit from Ford’s global reach and expertise. In India Ford will benefit from this alliance by expanding their distribution network in across the country.
“Today’s announcement is the next step in the collaboration between Mahindra and Ford,” said Dr Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd. “Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring.”
“Ford is committed to offering the best vehicles, technologies and services that fit the lifestyles and preferences of Indian consumers,” said Jim Farley, Ford executive vice president and president of Global Markets. “Listening to our customers and incorporating their future needs is the core premise of this collaboration. With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made.”
It may be recalled that Mahindra and Ford were together in a 50:50 joint venture when Ford entered India way back in 1995. The partnership was later dissolved in 1998. This is the second time the two have come together for an alliance.