Ford & Mahindra Sign Pact to Build New SUVs and Electric Cars

Mahindra and Ford will also evaluate jointly developing a compact SUV and an electric car through this partnership.

Jim Farley of Ford (extreme left) with Pawan Goenka of Mahindra (extreme right). 

(Photo: Ford India)

Ford and Mahindra have signed a memorandum of understanding (MoU), which they had agreed upon in September last year, to jointly develop new SUVs and a small electric vehicle, besides working on connected-car technologies together.

This is the second time these two companies are coming together – the first was back in 1995, when they partnered to launch the Ford Escort sedan in India, a move which was the beginning of Ford India’s presence in India.

The Ford Escort was launched in India when Ford and Mahindra last partnered with each other in 1995.(Photo: Wikimedia Commons)

This time around, Mahindra and Ford will jointly work on first building a mid-size SUV (C-SUV). This will be based on a Mahindra platform, but will be branded and sold as separate vehicles by both the companies (similar in a sense to what Nissan and Renault do with some of their cars).

Ford and Mahindra also plan to co-develop a compact SUV, leveraging the strengths of both companies in this area. Ford already sells the EcoSport compact SUV, while Mahindra has a range of compact SUVs – from the KUV100, to the TUV300 and NuvoSport.

The companies have agreed to share engines and transmissions, which includes the supply of Mahindra engines to extend Ford’s range of products. This is an interesting development, where the Indian manufacturer will supply engines to the American brand.

The companies will also evaluate jointly developing an electric vehicle. Mahindra currently sells two electric vehicles in the passenger car segment in India – the e20 Plus hatchback and the e-Verito sedan.

The Mahindra E20 Plus is the most popular electric car in India for now. (Photo: Mahindra)

Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring. 

Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd

With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made. 

Jim Farley, Executive Vice President and President of Global Markets, Ford

The collaboration is for a period of three years. The companies will also look at extending support for Mahindra in global emerging markets, including Ford’s manufacturing and distribution. They will also work on products for future mobility needs (read electric-vehicle portfolio).

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