Ford and Mahindra Announce Joint Venture in India

This week, the Indian vehicle manufacturer Mahindra and the America motor company Ford have come together to sign a definitive agreement to assist one another in developing, marketing, and distributing vehicles throughout India and other emerging markets around the world.

Mahindra and Ford will form a joint venture in India that is 51 percent Mahindra and 49 percent Ford. Ford will transfer it’s personnel and assembly plants in India as part of this venture, but will retain other elements like the Ford Engine Plant in Sanand, Ford’s Global Business Services unit, Ford Credit, and Ford Smart Mobility. 

This joint venture is simply the next step in the strategic alliance formed between these two companies in September of 2017. It is designed to grow the Ford brand throughout India and to better export Mahindra products and Ford entities to emerging markets around the world. 

“Mahindra and Ford coming together is a testament to the long history of cooperation and mutual respect between the two companies,” said Anand Mahindra, Mahindra Group Chairman. 

“Our combined strengths Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise, global reach, and access to future technology – are a potent recipe for success. At its core, the partnership will be driven by the shared values of both companies, which are focused on caring for our customers, associates, and our communities,” Mahindra said.

In addition, the new venture allows Mahindra to continue to be a leader in the utility vehicles segment and continue to pioneer the development of clean and affordable technology in India. 

As part of the new venture, Ford’s newly established International Markets Group (IMG) will bring together 100 high-potential, recently emerged and emerging markets including India, Australia, ASEAN, Middle East, Africa, and Russia.

“At Ford, our purpose for 116 years has always been to drive human progress,” said Jim Hackett, current Ford president and CEO. “...To continue to do that, we need to evolve with new and faster ways of not only delighting our customers around the world but also solving their very different needs. Strong alliances like this play a crucial role in ensuring we continue to achieve our vision while at the same time staying competitive and delivering value to our global stakeholders.”  

Areas of focus for this new partnership include the introduction of three new utility vehicles under the Ford brand, the continued global development of electric vehicles, and driving greater economies of scale across the automotive value chain through sourcing, product development, and access to relevant technologies.

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