Mahindra and Ford join hands to make SUVs and EVs

Mahindra and Ford will once again come together to do business. However, this time the partnership will be a more intrinsic one which will involve joint development of compact SUVs, electric vehicles and also connected cars. It may be recalled that Mahindra and Ford had entered a 50:50 joint venture in 1995 to manufacture and sell the Ford Escort. The JV later fizzled out, owing to many complexities. We had shared a story last year which talked about the two automobile giants jointly exploring possibilities to develop technologies in the future. Now, the two companies have signed a MoU, under which they will share technologies and synergies to develop and sell multiple products under individual brands.

Dr Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd. said “Today’s announcement is the next step in the collaboration between Mahindra and Ford,” he added, “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.”

Aiming to generate synergies and improve efficiencies with the new initiatives, the strategic alliance between the two companies continues to focus on leveraging the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and its successful operating model. Teams from both companies will continue to collaborate and work together, for a period of up to three years, to develop further avenues of strategic cooperation such as:

–       Extend support for Mahindra in global emerging markets, including Ford’s manufacturing and distribution network

–       Collaborate to address future mobility needs

Both companies have been doing well in the past few years, Mahindra is gearing up to get newer models in the market and Ford is also looking at expanding its portfolio. They both will make use of each other’s prowess to try and dominate the market.

Ford has recently unveiled its compact crossover – Ford Freestyle. Whereas Mahindra will be updating its XUV500 soon and also launching the XUV 700, a large size SUV.