Ford India and Mahindra & Mahindra to Enter into Joint Venture; Ford to Sell 51% Stake to M&M
Ford India and Mahindra & Mahindra to Enter into Joint Venture; M&M to hold 51% Stake
According to reports, Ford is planning to enter into a joint venture with Mahindra & Mahindra. This is not the first time when such reports have emerged regarding these two brands. Before these reports, both the companies entered into a joint venture for producing electric vehicles and small SUVs.
Reports suggest that Ford is partnering with Mahindra for its India operations and the deal will not include Ford’s global business or the engine plants in Sanand and Gujarat (from where the engines are exported).
This joint venture will help Ford remove the burden of operating in the Indian market while bearing the expenses. For Mahindra, it will be an opportunity to expand into the market with dynamic technology and powerful engines. Alturas G4 and XUV300 are the two vehicles from Mahindra & Mahindra for which the brand has been trying to expand sales into the urban market. With a joint venture, it will get a little easier.
If the deal is held successfully, Mahindra is expected to hold a 51% majority stake in the joint venture with Ford having equal rights to vote and power over board representation. Currently, it is not clear whether the deal will take place or it will be dropped but even if the deal takes place successfully, it will not mean that Ford has exited the market. It will continue to have its presence in the Indian market with dealerships and service centers giving proper care and treatment to the products these two companies sell during this JV.