Mahindra & Mahindra and Ford have announced their partnership, which will help both the automobile manufacturers to grow in the Indian market as well as in the worldwide market. The strategic partnership of both these automotive manufacturers are for a period of 3 years and are aiming to reap all the benefits of it.
While Ford is looking forward to use Mahindra’s wide spread of network in the nation, on the other hand, Mahindra can also benefit from Ford global reach in the world wide market. After the 3 year partnership, a further co-operation will be decided
This alliance will help Ford to grow in the electric car market, as Mahindra is currently focusing on electric vehicles. Mahindra is the only car manufacturer to produce electric cars in India. Whereas Mahindra will have a chance to enter the US market as they have been long trying enter it.
On the announcement of this strategic partnership, Pawan Goenka, managing director, Mahindra and Mahindra made a statement saying, “The changes facing the automotive industry globally are triggered by the accelerated rise of new technologies, sustainability policies and new models of urban shared mobility. Given these changes, we see the need to anticipate new market trends, explore alternatives and look for ways to collaborate even as we compete and build powerful synergies that will allow rapid exploitation of the exciting new opportunities."
This is not the first time that both the car manufacturers are partnering. In the year 1995 Ford entered the Indian market with Mahindra under the name Mahindra Ford India Limited (MFIL). This was 50-50 joint venture between the two car makers and it made a way to Ford Escort. While the partnership ended in 2005 and Ford decided to be independent in the Indian market.