Mahindra and Ford have announced that the two brands will work together to develop new SUVs, small electric vehicles and also introduce connected car solutions in the near future. Both Mahindra & Ford have signed a new MoU for their strategic alliance and they will jointly develop new products for the Indian markets as well as for other emerging markets globally.
Mahindra & Ford will look closely at the SUV space to develop a new mid-size SUV (C-SUV). This product will make use of the platform built by Mahindra but will be sold independently by both the companies along with being jointly developed using engineering and commercial efficiencies. Both companies will also consider sharing powertrain portfolios with each other.
Mahindra & Ford will also co-develop connected car solutions which will be lead by Ford. While Mahindra will benefit from Ford’s global reach & expertise, Ford will benefit from the Indian brands large scale operating model.
The alliance will allow Mahindra & Ford to work jointly for up to 3 years from now. During this tenure, Ford will extend support to Mahindra in global emerging markets by giving them access to manufacturing & distribution network.
Mahindra was the leader of utility vehicles in India for the past 7 decades. However, in recent times with more and more brands entering this segment, Mahindra has been facing some heat. Ford on the other hand hasn’t been able to generate strong sales figures in the recent past. Their latest products have only received a lukewarm response when it comes to sales. Ford however has made India a successful manufacturing hub for their products to be sold globally.