The alliance will focus on potential areas like electrification, connected vehicle projects, mobility programs, product development, distribution within India and improving Ford’s reach domestically, sourcing and commercial efficiencies as well as improving Mahindra’s reach in foreign markets. The memorandum of understanding will see teams from both the brands collaborating and working together for mutual benefits for a period of up to three years.
The outcome of the synergy will help decide if the alliance will further continue or not. Ford believes that the partnership will enable the company to deliver best vehicles and services to customers with profitable growth. Jim Farley, Ford Executive Vice President and President of Global Markets stated that the enormous potential in utility segment and the need for affordable battery powered EVs are key areas to work on as part of the agreement.
Dr. Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd, said that the exciting announcement has its foundation laid through the past collaborations and in response to the new market trends, technologies, exploration of new opportunities and new models of urban shared mobility. On a hindsight, the alliance shows how significant alternative energy sources and zero-emission vehicles are going to be in the years to come.
Ford’s vast presence in global scenes will be utilised by Mahindra to expand its footprint while its expertise in electric and autonomous driving technologies may pave way for some interesting synergies in the future. By being the largest utility manufacturer in the country, Mahindra’s undeniable market growth and commercialisation of products could aid in Ford aiming a sizeable pie at the fifth largest automobile market in the world.