Mahindra Group and Ford Motor Company will jointly develop new SUVs, and a small electric vehicle as part of several initiatives announced between the two companies. The two companies signed five new memoranda of understanding (MoU) that increase their alliance and accelerates the development of new products for consumers in India and emerging markets that Ford can’t finance alone.
The MoUs, which are non-binding, mark the progress made by the two companies since announcing their alliance in September 2017. (See Mahindra, Ford to Study Links in India, Emerging Markets) Mahindra is a $19 billion annual sales federation of companies. It has been leading the utility vehicle segment in India for the past seven decades, and India is on course to become larger than the U.S. market.
Mahindra is the only maker with a portfolio of electric vehicles commercially available in India. Mahindra owns 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.
Under the latest plans, Mahindra and Ford will co-develop a midsize sports utility vehicle (C-SUV). Built on the Mahindra platform, that will be sold independently by both companies as separate brands.
Mahindra and Ford also agreed to evaluate co-development of a compact SUV and electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford’s product range. Mahindra and Ford also announced plans to co-develop connected car solutions for consumers. The collaboration is in line with Ford’s commitment to helping people around the world move more safely, confidently and freely.
Teams from both companies will continue to collaborate and work together, for a period of up to three years, to develop further avenues of strategic cooperation such as:
- Extend support for Mahindra in global emerging markets, including Ford’s manufacturing and distribution network
- Collaborate to address future mobility needs
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 its manufacturing facilities 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 or Global Business Services operations in New Delhi, Chennai, and Coimbatore.