Mahindra & Ford To Work On New SUVs Together
In cars, the joint venture is the name of the game, baby. The thing is, there is no such thing as a bad car anymore (Yes, there are, but we don’t talk about them), so brand loyalty has become extremely negotiable. Nowhere more so than in the highly competitive Indian market. Only when two or more similar cars are in the same ballpark will today’s consumer buy exclusively on brand.
Cars, both the platform and the engine, are extremely expensive to develop. Once the development is done and manufacturing starts the reality of economies of scale kick in. So carmakers share development and common parts, as well as factories in many cases. In all cases, the winner is the consumer, who can get a better car at the best price.
One significant such joint venture is between global giant Ford and Indian behemoth Mahindra. The two have been in a strategic partnership in India since 2017, with the next step joint venture announced last year to commence this year. Mahindra will own 51% and Ford 49% of this new body.
Ford will transfer its India operations to the new venture, including personnel and the assembly plants in Chennai and Sanand while retaining its engine plant in Sanand. Vehicles for both brands will be sold in India and exported to global markets.
As part of this cooperation, the two brands are developing a C-segment SUV, a two-litre turbo-petrol that will launch in ’21 and ’22, as well as a pair of compact B-segment SUVs into that highly competitive part of the market.
These B-cars will be based on Ford’s VX-772 platform and be powered by the Mahindra 1.5-litre turbo-petrol mill. There will most likely be a diesel option as well, while the current market imperatives indicate either a full EV or a hybrid option for some international markets. These cars will be available in both front-wheel and all-wheel drive options.
The beauty of such a joint venture is that it can sell either brand in the markets where it is stronger. Both will be sold in the massive Indian market. In South Africa, the Ford brand has been a fixture for decades, while Mahindra has hit a sweet spot in terms of quality and price that has made it one of the fastest-growing marques here. It is not at this stage not known if either the B or C-segment Mahindra will be sold in our showrooms, but you can keep an eye on the Mahindra range to see what is available here now and in the future.
