Mahindra & Ford Sign Joint Venture To Share New Models

Published On Oct 01, 2019 07:53 PM By Sonny

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Ford brand to remain in India and introduce new products co-developed by Mahindra

  • Ford shifts Indian operational management to Mahindra as per new joint venture.

  • Ford to continue selling vehicles in India via its dealer network and with its brand name as before.

  • Mahindra-developed products to be shared with Ford; will feature distinct styling and individuality.

  • Next-gen Mahindra XUV500 likely to be the first shared product with Ford.

  • New MPV, compact SUV and an Aspire-based EV also in the pipeline of co-developed models.

A week after the news of Ford and Mahindra negotiating a likely partnership for the Indian market, the two automotive giants have confirmed that they will indeed be entering into a joint venture. As reported earlier, Mahindra will own a 51 per cent controlling stake and will manage Ford’s Indian operations under this new deal.

Also read: Ford And Mahindra Enter A Three-Year Courtship

As per this joint venture, Ford will transfer its India operations to Mahindra, including its personnel and assembly plants. However, Ford will retain its engine plant operations in Sanand and Global Business Services unit, their credit and smart mobility services included. Ford will also retain ownership of the brand and its products in India that will continue to be sold via the Ford dealer network. Ford is very much staying in India as per this joint venture, which is expected to be operational by mid-2020.

New Korando

The new joint venture include plans for three new SUVs from Mahindra to share Ford badges as well. They will be built on Mahindra-developed platforms and powered by Mahindra engines but they are expected to wear different skins. So, technically, they should look different inside out. The products from this joint venture won’t be cross-badged like we’ve seen between Toyota and Suzuki, but more like Volkswagen and Skoda.

Mahindra is likely to share the next-gen XUV500, a new MPV and a new compact SUV with Ford for sale in India and other emerging markets. Both carmakers will look into developing electric vehicles as well, with the first product likely to be built on the same platform as the Aspire sub-4m sedan. The first co-developed Ford product that is likely to be based on the next-gen XUV500 is expected to be launched in India by 2021.

Also read: Ford & Mahindra To Jointly Develop New SUVs, Small Electric Car In India

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