The Mahindra-Ford deal will see the development of new platforms and vehicles in the upcoming years.

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Ford is likely to sell its own version of the next generation XUV500

Mahindra and Ford have signed a deal to jointly develop a mid-size sports utility vehicle (SUV) in India. Ford and the affiliated companies will invest close to Rs. 6.80 billion for the development of vehicles over a period of ten years. The companies had already formed an alliance in 2017 followed by a deal of powertrain sharing and connected car solutions in October 2018.

The mid-size SUV is expected to have a common Mahindra platform and powertrain which will allow them to achieve engineering and commercial efficiency. The company says that both manufacturers will continue working to co-develop products using common product platforms. This will drastically reduce product development costs and be economical for both companies. The companies want to meet customer expectations in India as well as emerging world markets.

The companies are leveraging their individual strengths. While Ford has a higher global reach, Mahindra has a large operating model in India. They are collaborating in places of similar interest including electrification, distribution and product development. Ford has also signed an agreement with Mahindra for the procurement of a small-displacement petrol engine to be used in Ford’s upcoming vehicles, beginning in 2020. A telematics control unit will also be jointly developed by the auto giants.

Mahindra utility vehicles have a high demand in India. They are among the few global manufacturers who pioneer and develop clean and affordable technology along with a portfolio of electric vehicles which have been on sale in India. Mahindra also owns a majority stake in Korean Motor Company SsangYong. The company has also entered into shared mobility space and ride-sharing platforms in the US. The auto manufacturer is also developing the Gen ZE, which is the world’s first electric connected scooter. Ford had first entered India in 1995 and has been manufacturing vehicles for sales and export from India.

Ford Mahindra Mid-Size SUV

– Ford and Mahindra have signed an agreement to develop a mid-size SUV for India
– The companies will work on developing new platforms and vehicles, electrification and telematics control unit
– Mahindra will also supply Ford with a small-displacement petrol engine from 2020 onwards

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The new mid-size SUV from this partnership will be slotted above the EcoSport