Ford and Mahindra clinch their joint venture in India

MUMBAI — Ford Motor Co and Mahindra & Mahindra will form a joint venture company in India that will develop, market, and distribute Ford-branded vehicles in the country, as well as Ford and Mahindra vehicles in other emerging markets. Ford will have a 49% stake in the new entity, while India’s Mahindra will own 51%.

Ford has been in India since 1995, and its relationship with Mahindra dates back to 2017. Plans for the new joint venture were first reported back in April, when a source with knowledge of the project said “it’s like a partial exit” from India, and then were detailed last week. The move is part of Ford’s global restructuring plan. The automaker is pulling back from markets where it has been struggling; its profits are primarily in North America. 

Ford says the venture is planned to produce three new Ford-branded utility vehicles, starting with a midsize SUV that will use a shared Mahindra platform and powertrain. Ford-branded vehicles will be sold by the Ford dealer network in India. The joint venture is expected to be up and running by mid 2020. Currently, the Ford EcoSport is produced at the company’s plant in Chemnal, India, and Mahindra sells its off-road Roxor in the United States.

Reuters contributed to this report.