Two major auto giants of the automobile market Ford Motor Co. and Mahindra & Mahindra have declared a strategic partnership to reap the benefits of the M&M scale and operating model and Ford’s global network to sustain in the highly competitive market.
The inking of the MoU signifies comeback of the two automakers, which had decade-long joint venture in India in 1995, and in that era, it had introduced Ford Escort sedan jointly.
According to the MoU signed by both the firms, the areas that will be covered include distribution within India, connected vehicle projects, mobility programs, sourcing and commercial efficiencies, improving Ford’s reach, electrification, and expansion of Mahindra into other global developing markets. As per both the companies, teams from both the side will function together for the estimated period of three years. And if there will be any additional strategic collaboration among the two automakers, the decision will be concluded at the end of the period.
Executive Vice-President and President of Global Markets of Ford, Jim Farley stated that Ford is dedicated to India and this collaboration can aid us to offer the best automobiles and services to customers, and stay profitable in the worlds emerging 5th largest automobile market.
“Both the companies have a 10-year long history of mutual respect and cooperation. The MoU that has been signed with Mahindra will enable us to work along to take benefits of the upcoming transformation in the auto industry. Growing criticality of mobility, the immense growth potential of the market, and development of cost-efficient battery automobile is all associated with our planned priorities,” he added.
Managing Director of Mahindra and Mahindra, Dr. Pawan Goenka, said, “The changes faced by the automotive sector all around the globe is stimulated by the swiftly rising of new technologies, new models roll out of urban shared mobility, and sustainability. With these new modifications, there is a need to explore new alternatives, novel market trends, and look ahead to the alliance as we want to create powerful and competent synergies for swift exploitation of upcoming opportunities.”
Mahindra and Mahindra, which has dominance in the utility vehicle market in India more than a decade and a single player in the electric vehicle segment, also has a large share in Ssangyong Motor Company, Korea. It also has a joint venture in share mobility sector along with the investment in ridesharing platforms in the United States. The company is also known for the development of first electric connected scooter globally.
In the Indian automobile sector, there are various players planning to go hand-in-hand but many of them left the agenda in the halfway.