Indian auto giant Mahindra Group and one of the big three US car makers Ford Motor Company have signed a deal to leverage their mutual strengths in India and global markets.
Functioning together is not new to both the companies as Ford and Mahindra already had a joint venture in India in 1995. The j.v was active for about a decade.
The current collaboration aims to strengthen Ford’s commitment to India, while facilitating Mahindra’s expansion into other emerging international markets.
Mobility, electrification and product development are key areas of mutual cooperation of both the auto makers.
The areas of potential cooperation include
- Connected vehicle projects
- Electrification & Mobility programmes
- Product development
- Sourcing and commercial efficiencies
- Increasing Ford’s reach within India
- Expanding Mahindra’s reach outside of India
Both the companies will collaborate and work together for a period of up to three years and decide on extending the partnership in the third year.
Jim Farley, Ford executive vice president and president of Global Markets, “Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world’s fifth largest vehicle market.”
Farley said the enormous growth potential in the utility market and the growing importance of mobility and affordable electric vehicles are all aligned with strategic priorities.
Dr. Pawan Goenka, managing director, Mahindra & Mahindra, said, “Today’s announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us.”
Mahindra has been leading the utility vehicles segment in India for the past seventy years.
The spirit of ingenuity has driven Mahindra to be amongst the few global companies pioneering the development of clean and affordable technology, and is the only player with a portfolio of electric vehicles commercially available in India.
Expanding its global presence, Mahindra owns majority stake in Korea’s Ssangyong Motor Company, has forayed into the shared mobility space with investments in ride sharing platforms in the USA, and is developing products like the GenZe – the world’s first electric connected scooter.
Ford established its operations in 1995 and currently it is one of the largest car exporters from India. The company manufactures and exports vehicles and engines from its production plants in Chennai and Sanand in Gujarat. India is also the second-largest Ford employee base globally, with more than 14,000 people working across the Ford India or Global Business Services operations in New Delhi, Chennai, and Coimbatore.