Ford Kuga Facelift

Ford is looking to turn around its business in India with Mahindra partnership as both companies are developing new models

Ford officially commenced its India operations in 1995, a 50-50 joint venture with Mahindra & Mahindra. Then in 1998, they increased the stake to 72 percent and established Ford India Private Limited. The American manufacturer has invested more than $2 billion in India.

The problem for Ford is that models in volume segments are not bringing good numbers and EcoSport is the only model, which is doing well in the market. The company had high hopes with Figo and Aspire, but both models didn’t set the sales chart on fire and export brings quite a good money for the company in India.

Ford is looking to turn around its business in India with Mahindra partnership as both companies are developing new models to take on established rivals. According to a new report, both companies are discussing about a joint venture in which Mahindra will hold 51 percent stake and 49 percent by Ford under a JV.

The talks between both companies are in its early stage and there is no certainty about the project. Ford is looking to tap Mahindra’s domestic scale and operating model with this joint venture and it will help them to ease out the pressure from top management as they are losing money in India.

Ford Kuga Facelift-2

On the other hand, Mahindra is eying Ford’s premium technologies to help them compete against other global manufacturers. Ford declined to comment about the joint venture but they said that the company remains committed to India and they are confident with their strategy to build a sustainable and profitable business.

The first product to come out of the partnership will be premium mid-size SUV from Ford and it will be positioned between EcoSport and Endeavour. The upcoming SUV will likely be powered by new BSVI diesel engine from Mahindra and it will compete against Jeep Compass and Hyundai Tucson.

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