Mahindra and Ford have signed an agreement for a new joint venture in India. In this venture, both the car makers will co-develop, market and sell vehicles in India and across the globe.

The joint venture will see Mahindra owning a 51 percent controlling stake and Ford owning a 49 percent stake. Ford will transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. Ford will retain the Ford engine plant operations in Sanand as well as the Global Business Services unit, Ford Credit and Ford Smart Mobility.

The joint venture is valued at Rs. 1,925 crore and will be operational by mid 2020. Three new Ford utility models will be introduced under this joint venture. The first model will be a mid size SUV that will share a common platform with a Mahindra platform and power train. Ford and Mahindra will collaborate to develop electric vehicles to support the growth of sustainable mobility across emerging markets.

The joint venture will use the Ford brand distribution network in emerging markets to extend support
for export of Mahindra products, in addition to Ford branded vehicles. Exports today form about 7
percent of Mahindra’s auto business revenues and its products are exported to South Africa, Nepal,
Bangladesh, Sri Lanka and Chile, among other nations and areas. Ford has revealed an electric version of the Aspire compact sedan so a Mahindra badged version of the same can be expected to launch in the future.

“Mahindra and Ford coming together is a testament to the long history of cooperation and mutual
respect between the two companies. Our combined strengths – Mahindra’s expertise in value-
focused engineering and its successful operating model, and Ford’s technical expertise, global
reach and access to future technology – are a potent recipe for success. At its core, the partnership
will be driven by the shared values of both companies, which are focused on caring for our
customers, associates and our communities,” said Anand Mahindra, Chairman, Mahindra Group.

“Ford and Mahindra have a long history of working together, and we are proud to partner with them
to grow the Ford brand in India. We remain deeply committed to our employees, dealers and
suppliers, and this new era of collaboration will allow us to deliver more vehicles to consumers in
this important market,” said Bill Ford, executive chairman, Ford Motor Company.