Mahindra and Ford form a 3 Year Partnership


Mahindra and Ford form a 3 Year Partnership

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It has been announced by the Mahindra and Ford companies, that the two are going to come together for a span of three years in order to study the possibility of cooperation in various fields. Respective teams serving these companies shall be deputed to examine the strengths and the weaknesses of each company that could facilitate a possible and much welcomed strategic tie-up. Electrification appears to be a top priority for Ford especially since Mahindra has a number of EV or electric vehicles operating here in India. Electric mobility is something that the government is eventually going to turn to, so it is no surprise therefore that major car companies like Mahindra and Ford are preparing themselves as much as they can for this mega market switch.

The Ford Company does have a number of electric vehicles operating in its portfolio. However none of these cars function here on Indian roads. This is largely due to the fact that the market in India for cars is one that is price sensitive and the import duties are also known to be quite high. If any collaboration between Ford and Mahindra does indeed work out, then Ford might be able to access the EV technology that is being used by Mahindra to run electric cars here in India. If the companies build EV’s in partnership, this will reduce investment costs for Ford as well as the scale up costs for Mahindra.

Product development and mobility are two of the other areas in which the two companies are looking to collaborate with each other on. The utility vehicle space here in India is one that has been dominated by the Mahindra Company for quite some time now. The Ssangyong SUV expertise that Mahindra presently boasts of is something that Ford can definitely take advantage of in order to continue its successful run in the area of compact SUV’s with its Eco-Sport doing considerably well. If the Mahindra – Ford partnership does indeed work out, we can expect to see yet another Ford SUV arrive in the Indian market. Ford can also take advantage of Mahindra’s highly extensive network particularly its outreach in rural areas in order to expand and grow in the Indian market as best as it can.

A few of the other areas that both the Ford and Mahindra teams are going to study for possible cooperation include mobility, commercial and sourcing efficiencies, connected vehicle projects and distribution within the country of India with particular emphasis being laid on bringing about an improvement in Ford’s reach in the country. Mahindra it is believed can also benefit from its collaboration with Ford by increasing its presence in many other global markets. Once the three year collaboration is over it will be decided by both companies whether it is indeed possible for the two to merge or not. At present the relations shared between the two companies may be deemed as complicated at best and deliberating on it any further would be unnecessary. 

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