Today, Mahindra Group and Ford Motor Company have agreed to get into a strategic alliance, designed to leverage the benefits of individual strengths of the two companies.
The areas of potential cooperation include mobility programs; connected vehicle projects; electrification, 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. The strategic collaboration is for a period of up to three years. The two companies will decide the requirement of further strategic cooperation at the end of that period.
Jim Farley, Ford executive vice president and president of Global Markets said:
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.
Commenting on the collaboration, Dr. Pawan Goenka, managing director, Mahindra and Mahindra Ltd 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.
For 70 years Mahindra has been selling utility vehicles segment in the country. The brand is also the only player in India to offer a range of electric vehicles. The company also owns a majority stake in Ssangyong Motor Company in Korea; and has forayed into the shared mobility space with investments in ride sharing platforms in the USA. It has also developed products like the GenZe - the world’s first electric connected scooter.
Ford entered into the country in 1995, and though it has not much to show in market share, it is now one of the largest exporters of cars from India. It manufactures and exports vehicles and engines from its plants in Chennai, Tamil Nadu and Sanand, Gujarat. India is also the second-largest Ford employee base globally, with more than 14,000 people working across the Ford India and Global Business Services operations in New Delhi, Chennai, and Coimbatore.