Ford Evaluating New Working Relationship With Mahindra – Report

2021 mahindra xuv500 ford c-suv-1
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The earlier proposed JV was said to spawn three SUVs and Ford is currently working out a new relationship with Mahindra or may end it altogether

Ford and Mahindra announced a while ago that their proposed joint venture would not come to fruition and it did send shockwaves across the Indian automotive industry despite reeling from an economical slowdown and the health crisis for the majority of the last CY. On the back of it, the American auto major is said to be evaluating its strategy for India currently.

Citing a source, the report stated that the Blue Oval would either work out a “new relationship with Mahindra” or end the relationship and related vehicles completely. Ford will more likely make a decision in about a month on whether sticking together with Mahindra in a different strategy and the brand’s Chief Executive Officer Jim Farley wants to see “greater profitability in India”.

The 275 million USD worth JV was proposed for at least three SUVs along with supplier, engine and technology sharing. Ford has embarked on an aggressive restructuring plan and recently the production operations were ended in big markets like Brazil. The brand is focussing on expanding its SUV portfolio globally alongside introducing new electric vehicles.

mahindra ford suv india rear
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Ford is certainly reviewing its independent operations in India and new business choices are expected to be announced in the near future. The mutually beneficial relationship ultimately aims at high growth rate and profitability in India and in Mahindra’s case, the wide footprint of Ford could be utilised for expanding its reach in the overseas markets.

Ford was said to launch a mid-size SUV next year with an annual sales target of around 50,000 units. The five-seater would be based on Mahindra’s architecture and the developmental duties on this SUV had been frozen due to the JV not coming into reality. Another two SUVs built by Ford was scheduled to launch in 2023 and 2024 using Mahindra’s powertrains.

Negotiations are also underway for a turbocharged petrol unit from Mahindra to be used in the EcoSport. Ford’s production facilities are underutilised in India and going solo for new launches would catapult cost factors and the lead time taken to bring up new products. We are hoping to see a clear outline of Ford’s future plans for India in the not-so-distant future.