The US automaker and the Indian company have recently announced the start of a business collaboration – targeting not only India, but other, adjacent, emerging markets.
The Mahindra Group and Ford Motor Company have announced a prospective strategic alliance, aiming to mix Ford’s scale and global reach with Mahindra’s successful operating model for its native market of India. The areas designated for potential collaboration though have barely anything in common with the idea of emerging market – mobility programs, connected projects, electrification. The regular areas include product development, sourcing and commercial efficiencies, as well as Ford’s reach within India and Mahindra’s reach outside of it. “Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world’s fifth largest vehicle market,” said Jim Farley, Ford executive vice president and president of Global Markets.
The alliance has been established for a targeted three years, after which both companies will reevaluate their success, to see if their partnership is worthwhile. For the US automaker India certainly shows prospects – by 2020 the local market is expected to become third globally in terms of sales, with the best segment being the small car one. Major automakers have tried to gain a foothold in India – some failing, such as Volkswagen and General Motors (who is actually on its way out of the market) and some being very successful, such as Hyundai and Suzuki.