Monday, March, 20, 2023 09:23:37
The automobile industry is one of the most important business sectors across the globe. India’s automotive industry has become one of the leading destinations for investments due to rapid growth and development in the region. Currently, international automakers are partnering with Indian car manufacturers for expanding their business reach and strengthening their position in the new market. A similar incident occurred recently when Ford Motor Co. and Mahindra & Mahindra Limited announced a new joint venture, following which the two firms confirmed plans to co-develop and launch seven new models in India and other emerging economies across the globe. According to reports, this joint venture is valued around Rs 1,925 crore and will give both the companies a combined Indian market share of around 14 percent. Reportedly, Mahindra will have a 51 percent stake in this joint venture, while Ford will hold the remaining 49%. The co-development of cars will be operationally led by Mahindra, while both Mahindra and Ford will be responsible for the JV’s governance. Sources cite that, under the deal, Ford will transfer its Indian personal and assembly plant operations to newly formed joint venture company. However, the U.S. automaker will retain engine plant operation as well as Global Business Service unit, Ford smart mobility and Ford credit. Reportedly, the automaker could also borrow Mahindra’s XUV500 and rebrand it as a Ford SUV. While Mahindra could lend the Marazzo to Ford so that the U.S. firm could introduce its debut MPV car in India. Anand Mahindra, the Chairman of Mahindra Group, said that a joint venture between Mahindra and Ford was a tribute to the long history of cooperation and mutual respect between the two companies. Ford’s global reach, technical expertise, and advanced future technology and Mahindra’s successful operating model and value-focused engineering expertise would become a potent recipe for success. He further added that this partnership would be driven by the shared values of both companies that are focused on customers, associates, and communities. Source Credit -