Mahindra and Ford join hands in india
Hello guys Mahindra&Mahindra and ford have joined hands india. They are mainly joining hands because Mahindra&Mahindra wants to penetrate in international market and ford wants to grow in india. In 2005 both companies parted away from a tie-up.
Why the tie-up?
The main reason of this tie-up is to get into mobility programs, connected vehicle projects, electrification of vehicles, product development, and sourcing of commercial efficiencies. Building Electric cars is the vital reason behind the tie-up, so that both the companies can use their strategy together.
Both companies will work together for 3 years. The extension of the agreement will be decided after the end of the 3 year term period. It has also smoothen the operational and strategical decision for both brands.
Most foreign auto makers have struggled in the budget-sensitive Indian market and Ford has a less than three percent market share. On the other hand Mahindra&Mahindra has a good market share in indian market and is the only indian company which makes electric vehicle.
Jim Farley, Ford executive vice president and president of Global Markets said
“Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world’s fifth largest vehicle market.”
“Our two companies have a long history of cooperationand mutual respect. The memorandum of understanding we have signed today with Mahindra will allow us to work together totake advantage of the changes coming in the auto industry,” he added.
Dr Pawan Goenka, managing director, Mahindra and Mahindra Ltd elaborated
“The changes facing the automotive industry globally are triggered by the accelerated rise of new technologies, sustainability policies and new models of urban shared mobility. Given these changes, we see the need to anticipate new market trends, explore alternatives and look for ways to collaborate even as we compete and build powerful synergies that will allow rapid exploitation of the exciting new opportunities. Today’s announcement builds on the foundation laid through our past partnership with Ford and will open opportunities for both of us.”
Abdul Majeed, a partner at consultancy PwC said
“More auto makers would in future seek strategic tie-ups as the industry sees a major shift towards greener transport and greater use of information technology. Alliances are critical to survive going forward. No one can resolve these (issues) on their own.”