Mumbai: Mahindra and Mahindra Ltd and Ford Motor Co. are “exploring a strategic alliance designed to leverage Ford’s global reach and expertise and Mahindra’s scale in India,” the Indian company told the stock exchanges.
As part of the “agreement of intent”, the two companies will leverage their mutual strength during a period of unprecedented transformation in the global automotive industry, Mahindra said in the filing on Monday.
The area of potential collaboration would include mobility programs, connected vehicle projects, electrification, product development, sourcing and commercial efficiencies, improving Ford’s reach within India, improving Mahindra’s reach outside India. Teams of both the companies will work together on the aforementioned areas for a period of up to three years. Any further cooperation will be decided at the end of that period, Mahindra said.
Albeit in a different form, this will be the second inning of the US automaker with the Anand Mahindra-led firm. Ford entered the Indian market in October 1995 as Mahindra Ford India Ltd. The equal joint venture with Mahindra & Mahindra was short-lived. Ford increased its stake to 72% in March 1998 and renamed the company Ford India Pvt. Ltd.
Mahindra’s shares edged down 0.07% to close at Rs1,292 on the BSE, while the benchmark Sensex gained 0.47% to close at 32,424.