Mahindra and Ford recently entered a JV where Mahindra will own a 51 percent stake while Ford will own 49 percent of the stake
Mahindra and Ford recently announced a joint venture in India to develop, market and distribute Ford brand vehicles in India. Under the JV, Mahindra will own a 51 per cent stake while Ford will own 49 per cent of the stake.
Among many things planned, Mahindra-Ford JV will work to launch a Ford branded mid SUV to rival the likes of Kia Seltos, Hyundai Creta, MG Hector, Tata Harrier and other upcoming cars. The mid-SUV segment saw the most successful launches in 2019.
The all-new midsize sports utility vehicle will be among the three utility vehicles planned by the JV and 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.
Under the JV, Ford will transfer its India operations 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.
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.
Mahindra is currently the market leader in utility vehicles and under the JV, it can help Ford to establish a new product base as the brand is suffering from low sales. Ford currently has a compact SUV called Ecosport and a full-size Endeavour SUV.
Mahindra, on the other hand, has products ranging from micro SUV called KUV100 to compact SUV called XUV300 and even full size SUV called Alturas. With such wide range, Mahindra will support Ford to develop new mid SUV, which none of the companies currently offer and is highly lucrative segment in India.