It is a well-known fact that Mahindra and Ford entered into a strategic partnership. Under the collaborations, both manufacturers will develop new products, platforms, technologies and platform. Ford will be using the Mahindra's platform to develop new products for the Indian market. The company will use Mahindra XUV500 platform to develop a mid-sized SUV, which will challenge the likes of Hyundai Creta, Tata Harrier and Jeep Compass. Moreover, next-gen Ford EcoSport will be powered by Mahindra's engine.
Besides, the strategic partnership between Mahindra and Ford will also work on improving the latter's reach within India. According to a latest media report, the manufacturers have already started working on the same. In fact, select Mahindra dealerships have started selling the Ford EcoSport in regions where Ford does not have a dealership or its centre is not doing well. Adding to it, few of the dealerships are opening separate service outlets for the Blue Oval's vehicles at their establishment.
Speaking to Livemint, a source close to development, said, "Ford doesn’t have a robust chain of channel partners, so by letting Mahindra dealers sell Ford cars, the company is trying to reach most of the towns and districts of the country”.
Ford's spokesman revealed that the pilot project has been rolled out in 15 towns, and the results are positive, giving incremental sales and service reach for Ford. The spokesman further reveals that Ford is betting big on Mahindra's network in areas where it does not plan to open a dealership. The report further claims that the pilot project was started six months ago. This arrangement benefits Mahindra dealerships as well, as it brings additional revenue and footfalls.
A second source close to Ford said, “Mahindra dealers are also under pressure since last few vehicles did not manage to draw the customers. So, this kind of move to consolidate certain aspects of their operations was always expected from the two companies,”.