Indian carmaker Mahindra & Mahindra has entered into a partnership with American car giant Ford Motors Company. This association is expected to help Mahindra & Mahindra expand its global outreach, and help Ford Motor Company gain some more market in India, benefitting from the successful business model of its new partner.
Apart helping each other get better markets within and outside India, the two car companies - Mahindra & Mahindra and Ford Motor Company - will cooperate in endeavours like mobility programs, connected vehicle projects, and product development. One pivotal avenue in the partnership between Mahindra Group and Ford Group will be developing electric vehicles. This will be a crucial step forward in times when other auto companies are also looking to make a mark in the emerging electric vehicle segment.
Teams from both companies will collaborate and work together for a period of up to three years, stated a joint press statement released by the two companies. Any further strategic cooperation between the two companies will be decided at the end of that period.
Commenting on the partnership, Jim Farley, executive vice president and president of Global Markets for Ford, said, "Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world's fifth largest vehicle market."
"Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry. The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with our strategic priorities," he further added.
"The changes facing the automotive industry globally are triggered by the accelerated rise of new technologies, sustainability policies and new models of urban shared mobility. Given these changes we see the need to anticipate new market trends, explore alternatives and look for ways to collaborate even as we compete and build powerful synergies that will allow rapid exploitation of the exciting new opportunities. Today's announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us," said Pawan Goenka, managing director, Mahindra and Mahindra.
Mahindra & Mahindra has collaborated earlier with Renault, but the joint venture ended in when the former brought latter's stakes in it. Ford Motor Company too, in his initial years in India, re-entered Indian markets as Mahindra Ford India Limited (MFIL), a 50-50 joint venture with Mahindra.