Mahindra Group and Ford Motor Company have agreed to “explore a strategic alliance”, designed to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and successful operating model.
Besides the development of new products, the areas of potential cooperation includes mobility program, connected vehicle projects, electrification, sourcing and commercial efficiencies. The collaboration also includes improving Ford’s reach within India and improving Mahindra’s reach outside of India as well.
Teams from both companies will collaborate and work together for a period of up to 3 years. Any further strategic cooperation between the two companies will be decided at the end of that period.
“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,” said Jim Farley, Ford EVP and President of Global Markets.
“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.”
Pawan Goenka, MD, Mahindra and Mahindra elaborated: “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.”
Mahindra is the only player with a portfolio of electric vehicles commercially available in India. The company owns majority stake in Ssangyong Motor Company of Korea, has forayed into the shared mobility space with investments in ride sharing platforms in the USA. Mahindra also owns GenZe – claimed to be the world’s first electric connected scooter.
A similar partnership between Tata Motors and Skoda was called off recently.
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