Mahindra & Mahindra Limited and Ford Motor Company have signed an agreement to create a joint venture, Indian automaker said in a press release on Tuesday.
According to the document, Mahindra owns 51 percent controlling stake and Ford owns 49 percent stake of the newly formed joint venture.
The joint venture will be responsible for developing the Ford brand in India and exporting its products to Ford entities globally. Ford will continue to own the Ford brand, and its branded vehicles will be distributed through the current Ford India dealer network.
“Mahindra and Ford coming together is a testament to the long history of cooperation and mutual respect between the two companies,” said Anand Mahindra, Chairman, Mahindra Group. “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.”
Executive Chairman of the Ford Motor Company Bill Ford noted that they are proud to partner with Mahindra to grow the Ford brand in India.
US$275 million joint venture expects to introduce three new utility vehicles under the Ford brand. Another area of focus for the joint venture will be electric vehicles. Ford and Mahindra will collaborate to develop vehicles to support the growth of sustainable mobility across emerging markets, said in press release.
The joint venture will use the Ford brand distribution network in emerging markets to facilitate the export of Mahindra products, in addition to Ford branded vehicles.