Taking forward the agreement first signed in 2017, Mahindra and Ford Motor Company have announced that the two will co-develop a new mid-size SUV. The new product will be based on a Mahindra platform and powertrain, and will likely take on the likes of Hyundai Creta. The two companies say that the new agreement reinforces the progress made since the announcement of the strategic alliance in September 2017, followed by an announcement on powertrain sharing and connected car solutions in October 2018.
Mahindra and Ford stand to benefit from each other as Ford brings its global reach and expertise to the table, while Mahindra has a better understanding of the Indian car market. Teams from both companies continue to collaborate on all areas of mutual interest including electrification, distribution and product development.
“I am happy with the significant progress we have made and synergies we have created since the announcement of our strategic alliance with Ford in 2017. Today’s announcement is another significant step in the collaboration between our two companies,” Dr Pawan Goenka, Managing Director, M&M Ltd. said.
“Having identified several areas for joint development, both companies will continue to work together to develop products using common product platforms. This will reduce product development costs and gain economies of scale for both companies.”
“With today’s announcement, we not only strengthen our ongoing partnership with Mahindra but also sharpen our competitiveness in an important emerging market like India,” Jim Farley, President of Ford New Businesses, Technology & Strategy said, adding: “Ford’s technological leadership combined with Mahindra’s successful operating model and product prowess will surely help us deliver a vehicle that will meet the expectations of customers in India as well as other emerging markets.”
Earlier this fiscal year, the alliance signed an agreement with Mahindra Group to develop and supply a low-displacement petrol engine for use in Ford’s present and future vehicles, beginning in 2020. Mahindra and Ford also announced joint development of a telematics control unit.