Ford could establish a joint venture with Mahindra & Mahindra in India, Reuters reports.
Sources close to ongoing talks between Ford and Mahindra & Mahindra assert that a joint venture could be formed, in which Ford will hold a 49 per cent stake while Mahindra will own a controlling 51 per cent. The formation of the joint venture would see Ford transfer most of its current Indian automotive business, including assets and employees, to the new joint venture.
No financial figures about the joint venture are known, but the deal could close in as little as 90 days.
Both Ford and Mahindra & Mahindra have refused to address reports about the issue, but in a statement, Ford did say the two companies continue to work together “to develop avenues of strategic cooperation that help us achieve commercial, manufacturing and business efficiencies.”
Ford first established a strategic alliance with Mahindra back in 2017 and the two committed to building new cars together. The Blue Oval has spent over two decades investing more than $2 billion in India, but has struggled to establish itself and only has a market share of 3 per cent. Ford sold close to 93,000 vehicles in India during the last fiscal year, a drop in the ocean to the 1.7 million cars Maruti Suzuki sold over the same time period.
A joint venture between Ford and Mahindra & Mahindra would result in more affordable vehicles than those produced exclusively be the Dearborn car manufacturer and could help it regain traction what is expected to become the world’s third-largest new car market by 2023.