Today there was a big announcement from Mahindra Group and Ford Motor Company where they have agreed to explore a strategic alliance. Details are sketchy but some points have been outlined by both. The clear thing is that both will leverage each others strengths and with numerous challenges facing the automotive industry and the relentless domination of Maruti, this has been a strategical move by both to gain more traction.
The key points are Product development, Mobility programs, Connected vehicle projects, Electrification, Distribution within India; improving Fords reach within India, improving Mahindras reach outside of India. Both companies will collaborate and work together for a period of up to three years. Any further strategic cooperation between the two companies will be decided at the end of that period. What this means is that both will use each others strengths to cure each others needs and wants.
Ford India needs Mahindras service network and reach plus its electric car portfolio whereas Mahindra will also benefit hugely with the massive reach of Ford and its arsenal of tech and product development. Ford had entered India with Mahindra way back in the 90s and now its a return to its old partner. What we can expect is new products which both will develop. Thus we can expect a product from both for the Indian market while important factors like electrification will also be on the agenda but at first we might see the use of Ford globally for Mahindra to reach new markets along with Ford using the Mahindra network to increase its reach which is crucial.