Mahindra-Ford JV To Invest Rs. 1,925 Crore, New SUVs Coming

Ford-Mahindra JV To Launch 3 SUV Soon - Details

The first product to be launched by the Mahindra-Ford JV will be a C-segment SUV that will be based on the same platform as the upcoming next-gen Mahindra XUV500

Mahindra & Mahindra and Ford Motor Company had originally signed an agreement to explore possible cooperation on products, technology and distribution in 2017, and later formed a joint venture two years later, with the JV set to develop, market and distribute Ford-branded vehicles in the country.

As a part of the agreement between the two, the JV will initially be going big on producing SUVs. The Joint Venture has Mahindra owning a 51 percent controlling stake and Ford owning a 49 percent stake. The American brand transfers its India operations to the joint venture including personnel and assembly plants in Chennai and Sanand.

Ford retains the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility. It is responsible for growing the Ford brand in India and exporting its products to Ford entities globally. The Blue Oval continues to own its brand and its vehicles are distributed through the current dealer network.

mahindra ford engine

Meanwhile, Mahindra continues to own the Mahindra brand and operate its own independent dealer network across the nation. The joint venture expects to launch three new UVs under the Ford brand, starting with a new midsize SUV and it will have a common Mahindra product platform and powertrain.

Ford and Mahindra will collaborate to develop electric vehicles as well and support the growth of sustainable mobility across emerging markets. The Joint Venture is expected to achieve greater efficiencies to strengthen the Ford brand. It will use the Ford distribution network in emerging markets to extend support for export of Mahindra SUVs.

Last year, the two companies revealed their plans of developing a new premium SUV as mentioned above for the country. The said C-SUV will be underpinned by the same platform that will be used on the upcoming next-gen Mahindra XUV500. Both of the SUVs will be using the same powertrains, however, the Ford SUV will feature a distinctive design.

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