Mahindra & Mahindra (M&M) and Ford Motor Company, on 18 September, inked a pact to explore a strategic alliance covering areas like product development, electric vehicles and distribution in India and abroad.
Under the agreement, teams from both companies will collaborate and work together for up to three years to leverage benefits of Ford's global reach and expertise and Mahindra's scale in India, the two companies said in a statement.
The companies said their alliance would look at areas of potential cooperation including, "mobility programmes, connected vehicle projects, electrification and product development".
Besides, it will explore sourcing and commercial efficiencies, distribution within India, improving Ford's reach within India, global emerging markets, improving Mahindra's reach outside of India, the statement added.
The two companies had a 50:50 joint venture – Mahindra Ford India Ltd – in the mid-90s when Ford re-entered India.
Ford Executive Vice-President and President of Global Markets, Jim Farley, said the company is committed to India and the alliance could help it deliver the best vehicles and services to customers while profitably growing in the world's fifth largest vehicle market.
The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with Ford's strategic priorities, Farley said.
Ford has been fully behind coming up with futuristic automotive solution like electric cars, and hopefully M&M finds its tune to set up cars for future, especially with the Indian government aggressively pushing for an electric vehicle overhauling by 2030 in the country.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)