A joint statement has been issued by Mahindra and Ford for the exploration of JV in various fields of the automotive sphere. This is second collaboration for Ford and Mahindra and they have listed out seven areas of cooperation as a part of the deal.
These strategic areas are as follows.
Mobility programs
Connected vehicle projects
Electrification
Product development
Sourcing and commercial efficiencies
Distribution within India; improving Ford’s reach within India
Global emerging markets; improving Mahindra’s reach outside of India
In the larger scheme of things, the biggest benefit for both companies is that Mahindra will get access to the North American market and other places where Ford has a strong presence. For Ford, which is the bigger player in the deal, it will allow them access to the Indian market where Mahindra has a strong presence i.e tier-two and tier-three markets. We also expect that Mahindra Electric will benefit from this alliance in the long run as Ford is already quite heavily invested in electric and autonomous vehicles.
Commenting on the announcement, Jim Farley, Ford executive vice president and president of Global Markets, 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,” he added.
Pawan Goenka, managing director, Mahindra and Mahindra said, “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.”
