Alliance planned between Ford and Mahindra

Mahindra Group and Ford Motor Company are exploring a strategic alliance to drive growth.

The agreement will allow each to leverage their mutual strengths during a period of unprecedented transformation in the global automotive industry.

Areas of potential cooperation include mobility and connected vehicle projects, electrification, product development, sourcing and commercial efficiencies, distribution within India (improving Ford’s reach there), and global emerging markets (improving Mahindra’s reach).

Teams from both companies will work together for up to three years, with any further strategic cooperation decided after that.

“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,” Ford executive vice president and global markets president Jim Farley says.

“Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed 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.”

Mahindra and Mahindra managing director Dr Pawan Goenka says 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.”

Mahindra has been leading the utility vehicles segment in India for 70 years. It is the only player with a portfolio of electric vehicles commercially available in India. Expanding its global presence, Mahindra owns a majority stake in Ssangyong Motor Company in Korea, has forayed into the shared mobility space with investments in ride sharing platforms in the USA, and is developing products like the GenZe – the world’s first electric connected scooter.

Ford was among the first global automakers to enter India in 1995. Now one of the largest exporters of cars from the country, Ford manufactures and exports vehicles and engines from manufacturing facilities in Chennai, Tamil Nadu and Sanand, Gujarat. More than 14,000 people work across the Ford India or Global Business Services operations in New Delhi, Chennai, and Coimbatore.