Mahindra and Ford Call off their Joint Venture

  • Published On: 5 January 2021
  • Views
  • Likes
  • 2 min read
  • Download

Mahindra & Ford signed an agreement in October 2019 to form a joint venture in the Indian market

Mahindra and Ford
  • Mahindra and Ford


  • The end of this joint venture will not affect Mahindra’s production plans.
  • Ford is planning to re-evaluate its business across the globe including India.
  • Both the automakers signed a joint venture agreement in October 2019.
  • Ford will continue its operation in India as a single entity.

In a big development, Mahindra & Mahindra and Ford Motor Company have called off their joint venture. Way back in October 2019, the two automakers had signed an agreement. As per the now-defunct JV, the two companies were to develop and sell cars in the Indian market. Furthermore, the definitive agreement signed between both the organizations in 2019 expired on December 31, 2020. 

Talking about the agreement, the joint venture was designed to develop, market, and distribute Ford models in the Indian market. In the JV, Mahindra was to hold a 51 percent stake while Ford would own the remaining 49 percent stage. Also, Ford would transfer Indian operations to the JV. It would include workforce and manufacturing units in Sanand and Chennai. The American automaker would retain the engine plant operations, Global Business Services unit, Ford Credit, and Ford Smart Mobility. The JV cancellation comes in the wake of the economic downturn caused by the COVID-19 outbreak. Ford will continue to look at new opportunities and synergies if it’s economically feasible. 

The planned joint venture was conceived to expand Ford’s presence in the lucrative Indian market as well as export products globally. The move to pursue mergers or alliances in the automotive industry is something that many manufacturers are looking at as cost reduction. France's PSA and Fiat Chrysler Automobiles NV are expected to close the proposed $38 billion mergers in the first quarter of 2021. 

As per the statement released by Ford, it said: “actively evaluating its businesses around the world, including in India, making choices and allocating capital in ways that advance Ford’s plan to achieve an 8% company adjusted EBIT margin and generate consistently strong adjusted free cash flow.”. As per the manufacturer, the decision to call off the JV won’t affect the proposed launch of the upcoming Ford’s mid-size SUV (W605 codenamed). It was based on the new-gen Mahindra XUV500. Also, the Indian automaker was to supply the new 1.2-litre T-GDi turbo petrol engine to power the Ford EcoSport soon. All these projects are part of an agreement signed before the dissolved JV. 

Read Also: 2021 Audi A4 Facelift India Launch Tomorrow

Author: Samreen Pall

A Computer Science graduate but a writer at heart, Samreen has one motto that she swears by: 'Everything is dull and useless if it has no drama in it.' This motto comes to life through her writing and storytelling style. She is the Senior Lead - Content Writer at Droom Technology currently and has a total experience of 5 years. In the past, she has worked with renowned brands while creating and curating amazing content for these brands. She is an avid traveller and loves a quiet sunset on a mountain top. more

Search Your Dream Vehicle

Select Category

  • Bikes
  • Scooters

Recent News

Ola Electric Scooter India Launch on August 15
Published On : 3 August 2021 | 1 min read

Ola plans to manufacture the electric scooter at its upcoming factory at Krishnagiri, Tamil Nadu

Click here to Read More
MG Motor India Partners with Reliance Jio
Published On : 3 August 2021 | 1 min read

MG's upcoming mid-sized SUV Astor will come equipped with Jio’s eSIM and IOT solutions

Click here to Read More
MG One Premium Midsize SUV Globally Unveiled
Published On : 2 August 2021 | 1 min read

The MG One SUV comes with powerful chip technology, advanced electric architecture, and an active digital ecosystem.

Click here to Read More
2022 KTM RC 390 Leaked Ahead of Official Premiere
Published On : 2 August 2021 | 1 min read

It will rival the likes of Kawasaki Ninja 300, TVS Apache RR 310 and BMW G310 R in India

Click here to Read More
Auto Expo - The Motor Show 2022 Postponed Due to Covid’19
Published On : 2 August 2021 | 1 min read

The Auto Expo 2022 has been delayed till further notice to ensure the safety of exhibitors and visitors

Click here to Read More
Jaguar F-Type R-Dynamic Black Bookings Start in India
Published On : 9 August 2021 | 1 min read

It comes at a price of £64,455 in the UK which is equivalent to nearly Rs 66.73 Lakhs

Click here to Read More