Daily Management Review

India’s Mahindra And Ford To Co-Develop New SUV For Emerging Markets


The already existing strategic alliance between India auto company Mahindra and the US car maker Ford is being strengthened.
The companies have recently signed an agreement to jointly develop a midsize Sports Utility Vehicle (SUV) aimed at the Indian and other emerging markets. A Mahindra platform along with the powertrain would be used for the manufacturing of the new SUV.
According to reports, the planned new vehicle – a C-segment SUV, being planned by the two companies could replace the XUV500 of Mahindra XUV500 and will be cross badged by Ford. Joint development of a new telematics control unit would also be done by the two companies hinting that the new SUV could very well be a connected car.
Reports said that a new low-displacement petrol engine is being worked on by Mahindra which would be supplied to Ford. For all of the future vehicles starting 2020, the powertrain would be used by the US auto giant which indicates that the engine of the new planned SUV could be BS6 compliant.
Mahindra and Ford had signed an agreement for exploration of mutual business interests in 2017. Electrification, distribution and development of new products are the three major areas that the both the companies have been collaborating upon since then.
"I am happy with the significant progress we have made and synergies we have created since the announcement of our strategic alliance with Ford in 2017. Today's announcement is another significant step in the collaboration between our two companies. Having identified several areas for joint development, both companies will continue to work together to develop products using common product platforms. This will reduce product development costs and gain economies of scale for both companies," said Dr Pawan Goenka, Managing Director, Mahindra commenting on the new development.
According to a report published in the media in November 2018, the alliance between the two companies would venture into the development of electric vehicles and Mahindra would be the leader in that aspect because it would reportedly provide the technology required for the development of new EVs. The platform for production would be provided for by Ford while Mahindra Electric would develop the all the other necessary software, hardware and technological build up. That would include the Battery Packs, Powertrian system (Motor and transmission), power electronics - the DC-DC charger and motor controller.
Mahindra would also be making further investments in its 2.0-litre diesel and petrol engines to make it BS6 compliant, the Indian company had said last year. Reports said that very same engine would also be used in the vehicles for the Ford badged version. This version would be a development on a cross badged model and could be fitted with some new elements such as a new front grille, different headlamps, etc. The latest version of the SYNC 3 infotainment system could be installed in the cabin of Ford's C-SUV after it is tweaked a little.