Mahindra & Mahindra and Ford Motor Company have officially entered into a joint venture that will develop and market Ford cars in India. The JV will also develop and sell Ford brand and Mahindra brand vehicles in emerging markets around the world.
In the joint venture, Mahindra will have 51 percent controlling stakes and Ford will control 49 percent stake. Ford will transfer its India operations to the joint venture, including its personnel and production plants in Chennai and Sanand. Ford will continue to have full stakes on engine plant in Sanand as well as Global Business Services unit, Ford Credit and Ford Smart Mobility. The new joint venture is expected to be operation by mid-2020. The JV will be responsible for growing the Ford brand in India and exporting products to Ford entities globally. Both brands will sell vehicles via their respective dealerships.
Mahindra and Ford joint venture is expected to introduce 3 new utility vehicles under the Ford brand. We reported earlier that Ford will launch an all-new mid-sized C-SUV, which will be based on the Mahindra W601 – the next-gen XUV500. However, the design and interior of the Ford C-SUV will be completely different. Adding to it, the SUV will receive structural changes as well and will offer Ford-like driving experience. The W601 and the mid-sized SUV are expected to be powered by a new BSVI compliant 2.0-litre turbo-diesel engine.
The JV is also expected to develop 2 new compact SUV. It is expected that Ford will launch an all-new compact SUV, which could either be based on the Mahindra XUV300’s platform or the existing Fiesta’s platform. This new compact SUV is expected to be the next-generation Ford EcoSport. Adding to it, a 5-seater premium compact SUV to challenge the likes of Hyundai Creta and Kia Seltos is also expected in the works.
The joint venture will also focus on electric vehicles. Ford and Mahindra will collaborate to develop electric vehicles for India as well as emerging markets. Mahindra has already announced to develop an all-new compact electric sedan, which will be based on the Ford Aspire.