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Mahindra & Ford jointly developed product plans put on hold

Written by Nizam Shaikh

In October 2019, American car major Ford and Mahindra entered into a joint venture to produce a number of vehicles for the Indian market as well as for the export market but at the beginning of 2021, the brand’s announced that they are amicably splitting up the previously announced partnership. While Ford announced that the India plans will continue and even Mahindra confirmed that the decision is not likely to make any changes to the future plans.

Ford-Mahindra Projects Frozen

But now latest reports suggest that Ford Motors has put all product plans on hold that the brand was working with Mahindra as the company finalises its new India strategy. Sources suggest that the brand could either work on building a new relationship with Mahindra or completely end the relationship along with the related products. The final decision is likely to come in the next 3 to 4 weeks and is in line with improving the American brand’s profitability. The decision will not affect Ford’s independent India operations.

Ford-Mahindra Projects

Ford and Mahindra under development were a number of SUVs across segments under the joint venture. The Ford vehicles which were going to be developed were a B-SUV codenamed ‘BX745’, a new Ford Mahindra MPV which could be based on the Mahindra Marazzo and a compact SUV codenamed ‘BX744’ which could be the next-generation EcoSport. Ford was planning to launch a new C-SUV next year which could have been based on the 2021 Mahindra XUV500 currently seen testing in the Indian market. The Mahindra XUV500 will be arriving later this year and the delay in plans was firstly due to the COVID-19 Pandemic and secondly the shortage of semiconductor in the global market.

Why Ford-Mahindra ended the joint venture?

According to the companies, Ford and Mahindra decided to split due to the business conditions caused by the COVID-19 pandemic. The companies after reassessing their respective capital allocations and with the passing of the December 31, “longstop”, or expiration, date of a definitive agreement, decided to end the partnership. Mahindra was the controlling partner with 51% stakes but the decision has come amicably.