Mahindra & Mahindra, Ford Motor sign three-year pact for electric vehicles, product development
Mahindra & Mahindra and Ford Motor said the alliance would look at areas such as mobility programmes, connected vehicle projects, electrification and product development.
New Delhi: Mahindra & Mahindra (M&M) and Ford Motor Company on Monday inked a pact to explore a strategic alliance covering areas like product development, electric vehicles and distribution in India and abroad.
Under the agreement, teams from both companies will collaborate and work together for up to three years to leverage benefits of Ford's global reach and expertise and Mahindra's scale in India, the two companies said in a statement.
"Any further strategic cooperation between the two companies will be decided at the end of that period," they
The companies said their alliance would look at areas of potential cooperation including, "mobility programmes,
connected vehicle projects, electrification and product development".
Besides, it will explore sourcing and commercial efficiencies, distribution within India, improving Ford's
reach within India, global emerging markets, improving Mahindra's reach outside of India, the statement added.
Mahindra & Mahindra Managing Director Pawan Goenka said: "Today's announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us."
The two companies had a 50:50 joint venture -- Mahindra Ford India Ltd -- in the mid-90s when Ford re-entered India.
Goenka said accelerated rise of new technologies, sustainability policies and new models of urban shared
mobility have triggered changes in the automotive industry globally.
"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," he said.
Ford Executive Vice-President and President of Global Markets, Jim Farley said the company is committed to India and the alliance could help it deliver the best vehicles and services to customers while profitably growing in the worlds 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.
The enormous growth potential in the utility market and the growing importance of mobility and affordable battery
electric vehicles are all aligned with Ford's strategic priorities, Farley said.
On Twitter, Mahindra confirmed the current-gen XUV500 will be discontinued once the Mahindra XUV700 is launched.
The Mahindra XUV700 is expected to come with 2.0-litre petrol and 2.2-litre diesel engines; will also get AWD.
Of the 76 gigawatts of production projects around the world that energy experts are tracking, 40 were announced in 2020.