The deal was confirmed early this morning and will see Ford enter the giant Indian car market on a wider scale.
In return, Mahindra gets assistance from Ford on the further development of new technologies and support with taking the brand into more global markets.
Mahindra Group and Ford Motor Company say the deal is designed to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and successful operating model.
The agreement between the two companies will allow each to leverage their mutual strengths during a period of unprecedented transformation in the global automotive industry.
Confirming the alliance, the car companies say the cooperation will include:
- Mobility programs
- Connected vehicle projects
- Product development
- Sourcing and commercial efficiencies
- Distribution within India; improving Ford’s reach within India
- Global emerging markets; improving Mahindra’s reach outside of India
Jim Farley, Ford executive vice president and president of Global Markets, says the alliance will initial run for a period of three years.
“Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world’s fifth largest vehicle market,”
“Our two companies have a long history of cooperation and mutual respect.”
The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry.
“The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with our strategic priorities.”
While Dr Pawan Goenka, managing director of Mahindra and Mahindra, says the arrangement will benefit both companies.
“The changes facing the automotive industry globally are triggered by the accelerated rise of new technologies, sustainability policies and new models of urban shared mobility.
“Given these changes we see the need to anticipate new market trends, explore alternatives and look for ways to collaborate even as we compete and build powerful synergies that will allow rapid exploitation of the exciting new opportunities.
“Today’s announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us.”