Through the joint venture, Mahindra will own a 51 percent stake while Ford will own 49 percent of the stake
Mahindra and Ford have announced a joint venture in India to develop, market and distribute Ford brand vehicles in India. Through the joint venture, Mahindra will own a 51 per cent stake while Ford will own 49 per cent of the stake.
Ford will transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. However, it will retain its engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.
With the partnership, the duo also plans on introducing three new utility vehicle in India under the Ford badge, beginning with a new midsize sports utility vehicle that will have a common Mahindra product platform and powertrain. In addition to this, the two companies will also focus on electric vehicles where they will collaborate to develop vehicles to support the growth of sustainable mobility across emerging markets.
The joint venture will use the Ford brand distribution network in emerging markets to extend support for export of Mahindra products, in addition to Ford branded vehicles. Exports today form about 7 per cent of Mahindra’s auto business revenues and its products are exported to South Africa, Nepal, Bangladesh, Sri Lanka and Chile, among other nations and areas.
“Mahindra and Ford coming together is a testament to the long history of cooperation and mutual respect between the two companies. Our combined strengths – Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise, global reach and access to future technology – are a potent recipe for success. At its core, the partnership will be driven by the shared values of both companies, which are focused on caring for our customers, associates and our communities,” said Anand Mahindra, Chairman, Mahindra Group.
“Ford and Mahindra have a long history of working together, and we are proud to partner with them to grow the Ford brand in India. We remain deeply committed to our employees, dealers and suppliers, and this new era of collaboration will allow us to deliver more vehicles to consumers in this important market,” said Bill Ford, executive chairman, Ford Motor Company.
The American manufacturer’s recently established International Markets Group will play a key role in the process. The IMG brings together 100 high-potential, emerged and emerging markets including India Australia, ASEAN, Middle East, Africa and Russia.
In addition to the established Ford Ranger and U.S. import businesses in IMG, the formation of this joint venture will add to IMG’s portfolio vehicles specifically tailored for emerging markets, and it places India very much at the centre of Ford’s strategy for IMG.
For the past seven decades, Mahindra has been the leader in the utility vehicle segment in India and has pioneered the development of clean and affordable technology in India. With the partnership, Ford will be able to heavily benefit from the same.