Mahindra and Ford Finalize Agreements on Powertrain Sharing and Connected Car Solutions

Renowned Indian automotive group Mahindra Group and the Ford Motor Company recently signed two definitive agreements related to powertrain and connected car solutions, thus reinforcing their current strategic alliance discussions that began in September 2017.

As an outcome of the agreement on powertrain sharing, the Mahindra Group will develop and supply a low-displacement petrol engine to Ford India. This engine will be used in its present and future vehicles, right from 2020.

By using this BS-VI compliant powertrain, Ford will be able to extend and strengthen its current range of petrol engines, and this will include the all-new 3-cylinder TiVCT family.

Ford and Mahindra also have plans to collaborate on a range of connected car solutions, which will include development of a telematics control unit. Once this is developed, the connected vehicle solution will be used in both Mahindra and Ford models.

Pawan Goenka, Managing Director, Mahindra and Mahindra said that the announcement of this collaboration will build further on the commitments that both companies have made to each other so far and widens the scope for many new opportunities.

Goenka added that the two companies were confident that they would be able to cater to customer expectations by collaborating on a number of joint development areas and will continue to explore the synergies that exist between the two companies.

The two companies will pool their expertise not just in engines and telematic solutions, but might also share vehicle platforms in order to make multiple models including SUVs in the future.

Jim Farley, Ford executive vice president and president of Global Markets said that through the company’s collaboration with Mahindra in powertrain and connected car solutions, it would be able to deliver an affordable portfolio and deliver a more connected and confident driving experience to Indian customers.

Ford expects this partnership to help it in a significant manner when it comes to cost reductions and rationalization of investments for the future. Ford India has launched a cost reduction exercise in India under the Emerging Market Operating Model.

Both companies have signed several MoUs which pertain to areas like co-development of compact SUVs and electric models earlier this year and they are making progress on these projects.

By collaborating, the two companies will be able to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale of operations in India and its successful operating model.

Ford and Mahindra will also explore how they can use each other’s factory and sales network in India and other emerging markets.