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Ford and Mahindra ink Pact to co-develop SUVs and Electric Vehicle

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Published on : Mar 23, 2018

World over, prominent automakers are shifting their attention to utility vehicles and electric cars, particularly in emerging and established markets. Such shift is increasingly being supported by strategic alliances, with incessant thrust from policymakers. U.S. auto giant Ford Motor Co, has on March 22, 2018 entered into an agreement with an India-based multinational carmaker Mahindra & Mahindra to develop an electric car and compact sports utility vehicles (SUV) in the range of midsize and compact. The pact in the nature of five non-binding memoranda of understanding (MoU) will focus on developing vehicles that will be sold just not in India but also to various other emerging markets. Under the collaboration, the car makers seek to further evaluate the co-development of a compact SUV and an electric vehicle.

Mahindra-Ford Pact to unveil Synergies to help Companies consolidate Positions in Emerging Markets

The intention to enter into a strategic alliance by the companies was announced back in September last year and this is the second in line. The companies by inking the deal hope to capitalize on the synergies to consolidate their positions globally. The collaboration will enable Ford to utilize the powertrain expertise of Mahindra to extend its product portfolio while the later will get access to the former’s global scale and reach. In particular, the Michigan-headquartered carmaker will get access to new electric vehicle designs at lower cost and a network of local suppliers, lending it striking competitive edge over rivals. Furthermore, this will enable one of the oldest car manufacturers in India to get a firm foothold in globally emerging markets.

Mid-size SUVs to be sold as Separate Brands by Companies

Under the new pact, the mid-size SUV will be built on Mahindra and Mahindra’s platform but will be sold as separate brands in emerging markets. The carmakers announced that the collaboration will span at least three years. Furthermore, they are planning to leverage the potential of their mutual strengths to develop a vast assortment of connected car solutions.