Ford is currently running a pilot program in which the EcoSport is sold through Mahindra dealerships and the initial results are encouraging
Ford and Mahindra announced its new partnership in March to develop new SUVs based on the Mahindra platform as the American manufacturer is struggling to post good sales numbers compared to competitors. According to a new report, Mahindra has started selling Ford vehicles as they are expanding their partnership.
The Indian manufacturer is selling Ford vehicles in places where the US-based automaker is not present or the current dealership is not performing well. Along with sales, the dealers are also servicing Ford vehicle also. Initially, Mahindra is selling the most popular model EcoSport and soon it will be expanded.
This will be a win-win situation for both companies as it will definitely help Ford to improve sales in small town and villages, it will be an opportunity for Mahindra dealerships to increase its revenue by selling and service Ford cars. Currently, this program is running in 15 towns and the results are encouraging for the American manufacturer.
The initiatives of this project started six months back and if everything goes well, it is expected to continue and some of the earlier models of Mahindra didn’t do well, so this strategy will definitely help the dealers to tally the loss. This sales strategy of combining product portfolio of both manufacturers will make them stronger to compete against Maruti Suzuki and Hyundai.
The joint development of new products will lower the cost and it will help the manufacturers to price these models aggressively, which is good for customers as they will get better technology at less value. The joint venture also includes developing the electric cars as the first product could be Aspire EV and it is expected to reach showroom by the second half of 2019.
Mahindra is currently working on a new BSVI petrol engine and it is expected to make its debut in the new Ford SUV, which is jointly developed by both these manufacturers. The new SUV might be introduced in 2019 and both companies are also investing in developing a telematics control unit for connected car solutions.