Ford and Mahindra come together for a joint venture in India
Ford and Mahindra have announced a joint venture in which both the carmakers will develop and sell vehicles in India as well as in the international markets. Mahindra will own 51 per cent stake in the new JV while Ford owning 49 per cent. Ford will handover its India operation, assembly plants in Chennai and Sanand to the JV - excluding Ford Credit, Ford Smart Mobility and their engine plant in Sanand.
The 1,925 Cr JV is expected to be functional by mid-2020. Togther, the companies will have an annual production capacity of 1.2 million and will give them a combined market share of 14 per cent in India.
Even with a JV, both the companies will be different brands and will not come as one in the market confirmed Pawan Goenka, MD, Mahindra and Mahindra. However, the JV will first develope a C-SUV for both the companies but will be produced by Mahindra. Following which will be two products one will be on a B-platform produced at Ford's plant in Sanand or Chennai. There will be no joint-branding of any of these products.
Coming to the EV plans of both the companies. There will be an EV based on the Ford Aspire but will source the electric drivetrain from Mahindra. The EV will be produced at one of Ford's facility.
The JV will also venture in international markets by exporting Mahindra vehicles using Ford's network.
Starts Rs 5.99 Lakhs