Ford Motor Company and Mahindra Group are all set to sign a MoU, to jointly develop Midsize and compact sports utility vehicles and a small electric vehicle. The companies also plan to co-develop smart car solutions for consumers.

India: Mahindra Group and Ford Motor Company will soon be co-developing midsize and compact sports utility vehicles and a small electric vehicle as part of several initiatives that were recently announced between the two companies. The companies have signed five new memoranda of understanding (MoU) in line with the strategic partnership forged last year, in an attempt to fasten the development of products for consumers in India and emerging markets.

As a part of the initiative, Mahindra and Ford will use their strengths in the utility vehicle space to develop a midsize sports utility vehicle (C-SUV). In a joint statement, the companies informed that the new SUV, built on the Mahindra platform will drive engineering and commercial efficiencies and will be independently sold as separate brands by both the companies.

The companies will also evaluate the co-development of a compact SUV and electric vehicle, beside sharing powertrain portfolios and including the supply of Mahindra powertrains to extend Ford’s product variety. They also plan on jointly developing a collection of smart car solutions for consumers.

The MD of Mahindra and Mahindra Ltd, in an interview said that the announcement is the next step in the association between Mahindra and Ford. Both the parties are working on joint development areas, keeping abreast with the industry requirements and utilizing each other’s strengths. The Executive Vice President of Ford stated that the company is committed to offer the best technologies, services and vehicles, fit for the lifestyles and preferences of Indian consumers.

Teams from both companies, will collaborate and work together, for up to three years for developing avenues of strategic cooperation by extending support for Mahindra in the global emerging markets, which will include Ford’s manufacturing and distribution network. The teams will also collaborate to address mobility needs that may arise in the future.

According to TechSci Research, in the coming years, sports utility vehicles (SUV) segment is expected to emerge as the fastest growing vehicle type segment in India passenger car market, backed by rising youth population, growing demand for compact SUVs, and increasing demand for vehicles with off-roading and greater carrying capacity. Moreover, increasing number of government initiatives to encourage adoption of cleaner vehicles, demand for electric vehicles in the country is anticipated to grow in the future. Under the Government initiative like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME), the government is has set a target of achieving 100% electric public transport vehicles by 2030, which will act as a driver for the growth of electric SUV’s in the country.

According to the recently published report by TechSci Research, “India Electric Vehicle Market, By Vehicle Type (Three-Wheeler, Two-Wheeler, Passenger Car & Bus), By Drivetrain Technology (Battery Electric Vehicle Vs. Plug-in Electric Vehicle), Competition Forecast & Opportunities, FY2013 – FY2023”, India electric vehicle market is projected to grow at a CAGR of over 37%, during FY2018-FY2023. Robust market growth is anticipated because of rising number of government initiatives such as incentive schemes to encourage adoption of environment-friendly electric vehicles, growing consumer inclination towards electric vehicles, concerns over harmful effects of air pollution, and huge investments by various OEMs for developing more affordable and premium electric vehicles in the coming years.

According to the recently published report by TechSci Research, “Global Small Electric Vehicle Market By Technology (Hybrid Electric Vehicle, Plug-In Hybrid Electric Vehicle, Battery Electric Vehicle), By Battery Type, By Geography, Competition Forecast & Opportunities, 2022, Global small electric vehicle market stood at around $ 6 billion in 2016, and is forecast to grow at a CAGR of 23% during 2017 – 2022, to reach $ 20.7 billion, on account of increasing consumer inclination towards electric passenger cars coupled with declining prices of electric vehicles. Moreover, the boost in demand for small electric vehicles can be attributed to favorable government policies and continuing surge in R&D investments by several OEMs to develop premium quality and affordable small electric vehicles. Few of the major companies operating in the global small electric vehicle market are Nissan, BMW AG, Toyota Motor Corporation, Ford Motor Company, Zhengzhou Yutong Bus Co. Ltd., Audi AG, Hyundai Motor Company, BYD Company Limited, Renault, etc.

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