Ford India will be launching three new utility vehicles under the JV. The Mustang was launched in India in 2016 © Pradeep Gaur/Mint via Getty Images
Ford India will be launching three new utility vehicles under the JV. The Mustang was launched in India in 2016 © Pradeep Gaur/Mint via Getty Images

Ford and Mahindra partnership will boost sourcing

Will Green is news editor of Supply Management
9 October 2019

Ford and Mahindra & Mahindra have formed a joint venture (JV) that will create economies of scale in India across areas including sourcing and access to technologies.

Under the deal Mahindra will own 51% and Ford 49%. Ford will transfer its India operations, including staff and assembly plants in Chennai and Sanand, over to Mahindra, but it will retain its engine plant in Sanand and its Global Business Services unit.

“Driving greater economies of scale across the automotive value chain including sourcing, product development and access to relevant technologies, the joint venture is expected to achieve enhanced efficiencies to strengthen the Ford brand in India,” said Ford.

The JV, due to be operational by mid 2020, is expected to introduce three new utility vehicles under the Ford brand, beginning with a vehicle that will have a common Mahindra product platform and powertrain. There will also be a focus on developing electric vehicles.

“Ford and Mahindra will collaborate to develop vehicles to support the growth of sustainable mobility across emerging markets,” said Ford.

Pawan Goenka, managing director at Mahindra, said: “Emerging economies including India are expected to account for one in three future vehicle sales.

“The joint venture will have a distinct product portfolio with shared platforms and powertrains, the newest technology, high quality and engineering standards from both Mahindra and Ford, at optimised costs.”

Bill Ford, executive chairman at Ford, said: “Ford and Mahindra have a long history of working together, and we are proud to partner with them to grow the Ford brand in India. We remain deeply committed to our employees, dealers and suppliers, and this new era of collaboration will allow us to deliver more vehicles to consumers in this important market.”

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