Ford inks partnership with Mahindra & Mahindra to ramp up its position in India automotive industry

The American multinational carmaker, Ford Motor Company, has recently signed an agreement with Mahindra & Mahindra in a bid to use the latter’s operational skills to innovate advanced technologies in the ever-growing automotive market. Ford and Mahindra, through this alliance, aim to coordinate and team up in the disciplines of connected fleets, electric cars, and vehicles distribution within India for the next three years.

Officially, both the companies would commence work after the respective teams from Ford and Mahindra would meet up, and get down to discussions regarding future plans involving cost curtailment and parts purchasing. As India is one of the most vital revenue pockets of automotive market, Ford may be looking forward to consolidating its position strongly in the region. As per analysts, India may, in all likelihood, emerge as the third largest market for automotive sector by the end of 2020.

Ford has been ideating strategic plans to launch new luxury models in India’s billion-dollar automobile market, for the next five years. The company has already gained profits in China from the sales of the Lincoln luxury models and SUVs. Now, with its investment in India, the American company is looking forward to continuing its exponential growth graph in the Asia Pacific region.

For the record, this is Ford’s first major public announcement post Hackett’s appointment as the chief executive officer, who is also currently involved in Ford’s business operations in India. Recently, the company cancelled its dubious plans of moving the small car production plant from Michigan to Mexico. In a bid to fulfill the demand for vehicles across North America, Ford now plans to export fleets from their China based auto factory, where they have already invested USD 500 million. In the second quarter of 2017, Ford earned USD 143 million pretax profit in APAC region. In the last few years, the revenue of the automaker has increased by 30% subject to three strong business tactics, including effective scale, strong brand value, and competitive cost.

Jim Farley, Ford's global business president, has been quoted stating that Ford’s partnership with Mahindra & Mahindra is likely to prove highly beneficial for the automaker, owing to the fact that the latter encompasses a very powerful technical prowess as well as a strong distribution network. Through this collaboration, both these companies would now be able to develop electric cars and autonomous vehicles, which will culminate into high profit margins, letting the firms consolidate their positions in India automotive market. Given Mahindra’s successful track record in the automotive sector, Ford is likely to have made a lucrative investment in India, say experts.

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Sunil Hebbalkar

Sunil develops content for Market Size Forecasters. A Post graduate mechanical design engineer by qualification, he worked as an intern at the defense lab for one year in the engine design and development department before switching his professional genre. Following his technical writing skills, he ...

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