Mahindra-Ford to form a new joint venture company in India

Earlier last year, we had brought news that Mahindra and Ford are looking to collaborate for future new products. The deal was signed and it is being said that work has already started on the same. Now, a fresh news comes in that the two may form a joint venture company in India. Mahindra-Ford are expected to announce this new development within the next three months.

Not only this, the report also says that Ford will likely cease its operations in India. An exit next year is likely. Ford has been in India since 1995 and while the company has given many an enthusiast a wet dream with their models, none of them could hold the market interest for long. This was primarily due to the perceived higher cost of spares as well as dated products that made it to our shores. The current Ford portfolio in India includes the Figo, Freestyle, Aspire, EcoSport, Mustang and Endeavour. The Figo is the least costly car in the lineup while the Mustang is the most expensive.

Does this mean new Mahindra-Ford vehicles in the showroom soon?

We are not sure about the details at the moment. What we understand is that Ford will hold 49 per cent stake in the new joint venture while Mahindra will hold the majority. Ford will be looking to leverage Mahindra’s retail outlet reach in the country while the latter can make use of the American giant’s technology prowess. As it is, a new Mahindra-Ford SUV, the size of the XUV500, will be developed soon and marketed. How the badging happens, remains to be seen.

Ford India’s social media response to the speculation was, ”
We are focused on building our future, so not too worried about the past 🙂 Also, speculations aside, Ford has no intention to exit India and will continue bringing products that Indian customers want and value. “

Source: Reuters

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