- Ford will reportedly end its independent operations in India.
- The American based company is in talks with Mahindra to form a JV.
- Ford will occupy 49% stake and Mahindra 51% under the JV.
- Mahindra to get access to Ford's assests and oversee development of new vehicles.
- The deal is expected to close within three months.
Ford will end its independent operations in India reports in media suggest. The American based carmaker is in talks with the Indian car giant, Mahindra to form a joint venture (JV) with Ford controlling 49% stake, and Mahindra 51%. The reports further suggest the deal will be closed within three months.
With Ford India ceasing its independent operations, most of its assets and employees will be transferred to the new JV Company. This would end Ford’s independent operations in India as a wholly owned subsidiary, which manufactures vehicles in the country. Under the JV, Mahindra will not only get access to Ford India’s assets, but it will also be in charge of the development of new SUVs, electric vehicles, etc.
Ford has been present in India for over two decades, although it bite the dust in terms of profit making for a long time until it brought right products for the Indian market. Globally, Ford is one of the top 5 brands with a variety of models in its line-up. With over 20 years in India and still occupying around 3% of market share, Ford now wants to utilise its resources and management bandwidth for other significant markets media reports suggest. Ford recently announced its intentions to cease retail of sedan in the USA.
The upcoming emission and safety norms set to implement in India will further mount up to the company’s. Besides, carmakers like Kia and MG Motor are gearing up to spearhead into the Indian market, which would add up to the competition. Hence, the JV with Mahindra gives Ford time to contemplate its future existence in the market. Currently, the American base company retails Ford Figo hatchback, Freestyle Ford crossover, Ford Aspire subcompact sedan, Ford EcoSport SUV, Ford Endeavour SUV and Ford Mustang in the country.