Mahindra and Ford join hands to develop SUVs and small e-vehicles

Mahindra Group and Ford Motor Company will jointly develop midsize and compact sports utility vehicles and a small electric vehicle as part of several initiatives announced Thursday between the two companies. According to the deal, Ford can also potentially sell the vehicles manufactured in other markets outside India.

The two companies have signed five non-binding memoranda of understanding (MoU) to cover each of the above segment, Mahindra said in a BSE filing, formalizing an alliance announced in September to co-develop a range of vehicles for India and other emerging markets.

The companies said they will co-develop a midsize sports utility vehicle which will be “sold independently by both companies as separate brands.”

Mahindra and Ford have also agreed to evaluate co-development of a compact SUV and electric vehicle, along with sharing powertrain portfolios, including the supply of Mahindra powertrains to extend Ford’s product range. The duo also announced plans to co-develop a suite of connected car solutions for consumers.

The announcement is the next step in the collaboration between Mahindra and Ford, Mahindra managing director Pawan Goenka said in the filing.

“Both teams are working together on joint development areas in keeping with industry requirements and leveraging (our) mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring”, he added.

“Ford is committed to offering the best vehicles, technologies, and services that fit the lifestyles and preferences of Indian consumers,” said Jim Farley, Ford executive vice president and president of Global Markets. “Listening to our customers and incorporating their future needs is the core premise of this collaboration. With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made.” 

The two companies said on Thursday they would continue to work together for a period of up to three years, which will include supporting Mahindra in global emerging markets.