MAHINDRA, FORD SIGN FIVE PACTS TO DEVELOP ELECTRIC, CONNECTED CARS

Mumbai:mahindra and Mahindra Ltd and Ford India Pvt. Ltd on Thursday said they have agreed to jointly develop connected vehicles, electric vehicles (EVS), drivetrains, compact SUVS and midsized SUVS.

The two companies have signed five non-binding memoranda of understanding to cover each of the above segment, M&M said in a BSE filing, formalising an alliance announced in September to co-develop a range of vehicles for India and other emerging markets.

The maker of the Scorpio SUV cited the “potential for shared investment, economies of scale, technology sharing and higher efficiencies in areas like product development and sourcing as also in new emerging growth areas of electrification and connected vehicles.”

The announcement is the next step in the collaboration between Mahindra and Ford, M&M managing director Pawan Goenka said in the filing. “Both teams are working together on joint development areas in keeping with industry requirements and leveraging (our) mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring,” he added.

Specifically, the two automakers will co-develop a small electric vehicle. On October 9, Mint reported that M&M would share its affordable EV technologies with Ford, which the American company plans to use in its small entry-level cars such as Figo and Aspire.the report also said Mahindra was in early talks with Ford to procure a vehicle platform Ka on which the Mumbaibased company aims to build an all-new electric sedan.

Mahindra and Ford also agreed to assess the co-development of a compact SUV, in addition to sharing their powertrain portfolios whereby Mahindra will supply powertrains to Ford to extend the latter’s limited product range in India and neighbouring nations.

Aiming to leverage the benefits of Ford’s global reach and Mahindra’s scale in India, teams from both companies will work together for up to three years, to assess the possibility of increasing support for Mahindra in global emerging markets via Ford’s manufacturing and distribution network, in addition to evaluating future mobility needs.