Photo: edited by autoevolution
Along with the United States of America and People’s Republic of China, the Republic of India is one of the biggest markets for passenger vehicles. The country crossed the 3 million mark for the fiscal year that ended in March 2017, with the Society of Indian Automobile Manufacturers expecting a bigger figure this year.
It’s no wonder, then, that Ford wants to capitalize on this growing market where demand for utility vehicles is through the roof. Ford, however, can’t expect to cut the mustard on its own in India, a place that’s unique from the viewpoint of automobiles. As a result of its own limitations, Ford decided to cooperate with Mahindra to take on the Indian market.
The world’s fifth largest car manufacturer, India is the home of Mahindra, the third largest automaker in the country after Maruti and Hyundai. On its own, the Blue Oval accounts for 2.6 percent of the Indian sales pie, with Mahindra boasting 7.5 percent market share. Agreeing to form a strategic alliance is exactly what Ford and Mahindra need for both to grow their businesses, a symbiosis that encapsulates many areas of potential cooperation.
These are mobility programs, connected vehicle projects, electrification, joint product development, sourcing and commercial efficiencies, distribution network (an advantage for Ford), and Mahindra’s reach outside of India. More to the point, the Mumbai-based automaker targets emerging markets.
“Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry,” declared Jim Farley, Ford Motor Company executive vice president and president of Global Markets. “The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with our strategic priorities."
It should be highlighted that India is the second-largest Ford employee base globally, with more than 14,000 people working in the country. The automaker’s plant in Chennai, for example, is tasked with manufacturing the U.S.-spec EcoSport subcompact crossover. By comparison, European models will are produced at Ford's plant in Craiova, Romania.
The world’s fifth largest car manufacturer, India is the home of Mahindra, the third largest automaker in the country after Maruti and Hyundai. On its own, the Blue Oval accounts for 2.6 percent of the Indian sales pie, with Mahindra boasting 7.5 percent market share. Agreeing to form a strategic alliance is exactly what Ford and Mahindra need for both to grow their businesses, a symbiosis that encapsulates many areas of potential cooperation.
These are mobility programs, connected vehicle projects, electrification, joint product development, sourcing and commercial efficiencies, distribution network (an advantage for Ford), and Mahindra’s reach outside of India. More to the point, the Mumbai-based automaker targets emerging markets.
“Our two companies have a long history of cooperation and mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry,” declared Jim Farley, Ford Motor Company executive vice president and president of Global Markets. “The enormous growth potential in the utility market and the growing importance of mobility and affordable battery electric vehicles are all aligned with our strategic priorities."
It should be highlighted that India is the second-largest Ford employee base globally, with more than 14,000 people working in the country. The automaker’s plant in Chennai, for example, is tasked with manufacturing the U.S.-spec EcoSport subcompact crossover. By comparison, European models will are produced at Ford's plant in Craiova, Romania.
Google News