Ford and Mahindra Sign Deal To Develop Compact SUV in India

• Published On: 28 June 2019
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Ford and Mahindra to jointly develop compact SUV

As is common knowledge by this point, Ford and Mahindra have joined hands in India for dealership sharing and engines. Ford is leveraging Mahindra’s extensive dealership networks in India and is selling its vehicles through those dealerships. Mahindra will supply petrol engines to Ford from 2020. On the other hand the US carmaker will share the Figo and Aspire with Mahindra for electrification and sale in India as well as resupplying the vehicles to Ford in the same layout. The partnership is aimed at using Ford’s global reach and expertise and Mahindra’s scale and successful operating model in India for the mutual benefit of the two companies.

Now the two companies have extended their partnership to another aspect. This involved the two car makers coming together to jointly develop a compact SUV that will lock horns with Tata Harrier and the updated Hyundai Creta in the market. The new SUV being jointly developed by the two companies will be built on Mahindra’s platform and powertrain, but the US carmaker will badge engineer the same compact SUV and sell it in India.

Mahindra and Mahindra’s managing director Pawan Goenka spoke about the compact SUV partnership with Ford and stated,

I am happy with the significant progress we have made and synergies we have created since the announcement of our strategic alliance with Ford in 2017. Today’s announcement is another significant step in the collaboration between our two companies. Having identified several areas for joint development, both companies will continue to work together to develop products using common product platforms. This will reduce product development costs and gain economies of scale for both companies.

The president of technology and strategy division of Ford New Business, Jim Farley also spoke about the compact SUV and this partnership and added,

With today’s announcement, we not only strengthen our ongoing partnership with Mahindra but also sharpen our  competitiveness in an important emerging market like India. Ford’s technological leadership combined with Mahindra’s successful operating modeland product prowess will surely help us deliver a vehicle that will meet the expectations of customers in India as well as other emerging markets.

As already, stated the Indian UV maker will supply new petrol engines to Ford from 2020. This will be around the time the stricter BS-VI emission norms kick in. This engine could be the new 1.2 liter turbo petrol motor seen on XUV300. This engine was jointly developed by Ssangyong and Mahindra.

The expanding partnership between Ford and Mahindra could be very good news for Indian customers as they will not only have better cars for purchase but the partnership of the two biggest car companies will see the customer getting the best of the bargain in the future.