The Mahindra Group and Ford Motor signed an MoU on Thursday to co-develop mid-size and compact SUVs, and a small electric vehicle, the automakers said in a statement.
The Mahindra Group and Ford Motor signed an MoU on Thursday to co-develop mid-size and compact SUVs, and a small electric vehicle, the automakers said in a statement. The products that may be developed as part of the agreement will be targeted towards India and other emerging markets. As part of the pact, the mid-size SUV will be made on M&M’s platform. It will be sold independently by both companies as separate brands. The companies have further agreed to evaluate the co-development of a compact SUV and an electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford’s product range. The companies had first announced that they are exploring a strategic alliance in September last year. The alliance aims to focus on leveraging the benefits of Ford’s global reach and expertise and Mahindra’s scale in India. So, this will not only help Ford expand its distribution network in India, but will also help M&M in gaining prominence in other emerging markets, where Ford has a stronghold in terms of manufacturing prowess and distribution chain.
Pawan Goenka, MD, M&M, said, “Today’s announcement is the next step in the collaboration between Mahindra and Ford. 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.”
This is the second time the two have entered into an alliance. In 1995, when Ford first entered India, it had a 50:50 joint venture with M&M under which the two produced a sedan called Escort. The joint venture was dissolved in 1998.
M&M and Ford are also planning to develop a variety of connected car solutions for consumers. Jim Farley, Ford executive vice-president and president, Global Markets, said, “With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made.”