Blog Description

Will Ford Acquire Mahindra To Rule India?

Automotive | Nov, 2017

Key Takeaways:

  •          The two big automobile giants reunite to analyse new ways to work together.
  •          Organizations to partner for a three-year term initially, to explore emerging markets.

Did You Know?

Ford re-entered India in the mid-1990s, when the country opened its automobile industry for outside venture, by partnering with Mahindra. The two organizations set up a manufacturing plant in Chennai and began making the Escort, the sedan segment. The Ikon, Fusion, Fiesta, Figo and different models took after, but this Michigan-based carmaker lingered behind companies including Suzuki Motor Corp., Hyundai Motor Co. in India. Thereafter, Ford and Mahindra finished their partnership in 1995 with Ford India entering the country as a subsidiary of Ford Motor Company. In the meantime, Mahindra recognized success with its bestselling vehicles -  Bolero, Scorpio, Xylo and XUV500.

Ford & Mahindra come together once again:

Ford and Indian automaker Mahindra Group have gone into another agreement to explore the potential strategic partnership in various diverse areas, including electrification, mobility, connected vehicles and vehicle infrastructure and others.

Mahindra in several years has built an immensely valuable bank:

This not the first time through Mahindra has had a global partner. In 2007, Mahindra framed a joint venture with French automaker Renault that saw the take-off of Mahindra Renault Logan vehicle. In 2010 later, Mahindra finished the joint-wander by purchasing the Renault's stake in the joint-venture.

Mahindra has been driving the utility vehicles segment in India for as long as seven decades and is now the main player with electric vehicles commercially available in India. Talking about its global presence, Mahindra claims greater part stake in Ssangyong Motor Company in Korea, has forayed into the shared mobility space with investments in ride sharing platforms in the USA, and is creating the GenZe - the world's first electric connected scooter.

So where does Ford come into picture when it seems Mahindra has it all?

Mahindra and Mahindra, which as of now offers the e2o small electric vehicle, is now interested in making another electric vehicle line in India with Ford following the opening of an industrial facility in Auburn Hills, Michigan, to manufacture off road vehicle for the US market.

Moreover, Mahindra is short of Technology and Ford is a global front-runner in automotive technologies and it has place in a lot of effort into electric vehicle and autonomous vehicles over the last decade. Ford has the technical centres that knows how to make electric vehicles that can travel more than just 100KM in a single charge. This shows how much Mahindra is showing interest to expand its foots in global market. Therefore, Ford will help establish Mahindra in the global market.

What you think, Ford’s mind is going in what direction?

In terms of business, Ford hasn't done awesome in India as it has just had two noteworthy achievements as the EcoSport and the prior Figo. The Indian operations itself isn't productive however the company has high export number. That’s why, Ford India can’t invest in manufacturing of new low cost electric vehicles from scratch just in a hope to sell these cars after ten years or so.

In this present scenario of Indian automobile industry where big giants are only focusing on electric vehicles and its infrastructure, many automobile makers are also worried about the huge investment the electric vehicles manufacturing going to take. Ford is among them; the India market is not that supporting to Ford, but the company can’t even survive without electric vehicles in coming years. This is the main big reason why Ford has agreed upon sharing the platform with Mahindra.

Ford has it all, like technology, like no one has have in India for electric vehicles. That’s why company is talking a helping hand of Mahindra to support it with all the resource and what’s next Ford is here in the rush of electric vehicle manufacturing. All we can say is -A Smart Move Ford.

Whether this partnership is going to be a game charger for Indian Market?

Time will decide whether this strategic partnership will be a game changer or not. According to Techsci Research, Research Analyst’s point of view, both the companies could develop better technologies and better electric vehicles as both have different skills in automotive industry, but three years seems like a vey less time for all the betterments that these companies are talking about like mobility, electric vehicles, transportation infrastructure and many more. Moreover, Ford is playing way smarter than Mahindra by using its platform to hold the India Electric vehicle market. Who knows Ford has plans to acquire Mahindra to rule India in Electric vehicle market as what Ford has have no one in India has have for electric vehicles- “The Technology for batteries”.

Well whatever the plans Ford or Mahindra have in their mind all we can see the India Electric vehicle market is going to boom over the next five years like anything. According to the recently published report by TechSci Research, “India Electric Vehicle Market, By Vehicle Type, By Drivetrain Technology Type, By Charging Infrastructure Trends, By Company, Forecast & Opportunities, 2012-2022”, the India Electric Vehicle Market is expected to grow at a CAGR of over 100% during the next five years backed by growing vehicle emissions, declining Li-ion battery prices, growing consumer preferences for advance technology systems and government regulations for electric vehicles in India. Moreover, state governments in India are focusing on environment-friendly electric vehicles and are developing new industrial policies which will further boost the demand of electric vehicles across the country during the forecast period.

                                                                                  Source: Techsci Research

Conclusion: Unless the two organizations look at a longer timeframe, this partnership, I'm puzzled is a huge news, as so many automobile giants are doing the same strategic partnerships take example of Toyota and Maruti Suzuki. 

Relevant blogs

Know How Battery Management Systems are Revolutionizing Manufacturing05 Jun, 2024

In the race towards sustainability and efficiency, the automotive industry has undergone a remarkable ...

Tipper Truck Capacity in India: An In-Depth Guide31 May, 2024

In the realm of construction and transportation industries, the efficiency of moving materials plays a ...

Top 10 Automated Guided Vehicles (AGVs) Companies in the World 06 May, 2024

Discover the leading Automated Guided Vehicles (AGVs) companies worldwide, revolutionizing industries with ...

Top 12 Electric Vehicle Companies Worldwide02 Feb, 2024

Electric vehicles (EVs) are revolutionizing the automotive industry, and the demand for them is increasing ...

How 5G is Transforming the Automotive Industry21 Dec, 2023

5G technology is changing the way cars function by enabling faster communication between vehicles, ...

Uncovering Two-Wheeler Market Trends in India18 Dec, 2023

Today, consumers are smart. They are aware of the benefits and cons that come with any purchase. With ...

 

Request your query

captcha
Letters are not case-sensitive