Dearborn’s Ford and India’s Mahindra Group Sign Agreements to Share Powertrain, Connected Car Solutions


Ford Motor Co. in Dearborn and Mahindra Group in India Wednesday signed two agreements to share powertrain and connected car solutions, further strengthening their partnership.

Under the powertrain agreement, Mahindra Group will develop and supply a low-displacement petrol engine to Ford India for use in its present and future vehicles starting in 2020. The BS-VI compliant powertrain will help Ford extend and strengthen its existing offering of petrol engines.

The two companies also announced the joint development of a telematics control unit. Once developed, the connected vehicle solution will be deployed across Mahindra and Ford vehicles.

“We are pleased with the progress our teams have made since we announced our strategic alliance with Mahindra Group a year ago,” says Jim Farley, executive vice president and president of global markets for Ford. “Today we go further in delivering even greater value. With our collaboration in powertrain and connected car solutions, we will deliver an affordable portfolio and enable our Indian consumers to get behind the wheel feeling more confident and connected.”

The companies first announced a strategic alliance in September 2017 and followed it up with five memoranda of understanding in March 2018. They continue to make progress on the remaining memoranda, which include leveraging their respective strengths on product development for India and emerging markets, including co-development of compact SUVs and electric vehicles.

The alliance aims to leverage Ford’s global reach and expertise and Mahindra’s scale in India and its successful operating model.

“Today’s announcement further builds on commitments made so far, leading to a fruition of exciting new opportunities,” says Pawan Goenka, managing director of Mahindra and Mahindra Ltd. “We are confident to meet customer expectations by working together on a number of joint development areas. Going forward, we will continue to identify the synergies that exist between the two companies.”

Mahindra has led the utility vehicle segment in India for the past seven decades and is the only player with a portfolio of electric vehicles commercially available in India. The company owns a majority stake in Ssangyong Motor Co. in South Korea.

Ford was among the first global automakers to enter India in 1995 and is now one of the largest exporters of cars from the country. India is the second-largest Ford employee base globally, with more than 14,000 people working there.

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