Fresh reports from the media confirm that Ford is planning to stop its India operations as a sole person, and will enter into a joint venture with Mahindra.
As we see the monthly sales of Ford in India, they are just registering around 5,000 units a month. Despite selling many popular models like the Figo, EcoSport and the Endeavour, their situation is still not that fancy here.
Bloomberg now reports that Ford has almost finalized its plan to exit India, but will enter into a joint venture with Mahindra. Technically, it would still remain in India, but would not be alone.
With this, we can see the exchange of technologies, engines and some models as well, between both of them. In this joint venture, Mahindra will own 51% of the assets of Ford, but the latter will also have equal voting rights.
Ford started its operations in India some 20 years back, with the Ford Escort. It was a classy sedan, but way ahead of its time. Later came the Ford Ikon, which was another popular sedan which did a breakout for Ford.
Over the years, its market share has gradually gone down, and now, it just has a 3% share in the automotive sector. With the Ford and Mahindra Joint Venture, things could get better for the American.
Till now, we have a confirmation that Ford and Mahindra are developing a new mid-size SUV, that will go against the likes of Hyundai Creta and Kia Seltos, in the 15 Lakh segment. It will be launched by the end of 2022, reportedly.
Also, the 1.0 Litre EcoBoost engine on the EcoSport will be replaced by Mahindra’s 1.2 Litre TGDI petrol engine. Lastly, Ford and Mahindra are also working on the Aspire-based electric vehicle for India.