M&M may tie up with Ford for emerging markets foray
NASHIK: Mahindra and Mahindra Ltd (M&M) is exploring the feasibility of entering emerging markets such as Indonesia and Russia in partnership with Ford Motor Co.
“We are exploring various aspects with Ford; manufacturing, sourcing, engineering or even on the retail front. But things are at a very initial stage (in these markets) to conclude what aspect we will be partnering on,” said Pawan Goenka, managing director, Mahindra & Mahindra Ltd.
In September 2017, Ford and Mahindra said that they are exploring a strategic alliance to “leverage Ford’s global reach and expertise and Mahindra’s scale in India”. The agreement, the companies said, will allow them to combine their strengths during a period of unprecedented upheaval in the automotive industry.
If Goenka’s plans go through, Mahindra will be the first Indian car maker to strike such a global alliance. A similar arrangement between Tata Motors Ltd and Volkswagen AG failed to make progress after an initial agreement.
A wave of consolidation is sweeping through the sector. Toyota Motor Co. has bought Daihatsu while Nissan has acquired Mitsubishi. General Motors Co. has pulled out of some key markets, including India, and is doubling down on North America and China.
Amid all this, M&M has decided to develop products on a global scale, in collaboration with unit Mahindra Automotive North America (MANA) and iconic design firm Pininfarina S.P.A., Anand Mahindra, executive chairman of Mahindra & Mahindra, said at the launch of the Marazzo multipurpose vehicle on Monday.
The Marazzo was the first product to be jointly engineered by MANA in Detroit and the Mahindra group’s R&D centre Mahindra Research Valley (MRV) in Chennai. Pininfarina, which Mahindra bought in December 2015, worked on the design in collaboration with Mahindra’s local design studio in Mumbai.
The 1.5-litre, 4-cylinder diesel engine on the Marazzo was jointly developed by MRV and Austria-based engineering and powertrain firm AVL List Gmbh.
“It (the Marazzo) is a proof of concept of Mahindra’s global network of R&D working together to deliver worldclass products. We have the confidence that we can once again use this neural network (of development centres) to deliver,” Anand Mahindra said.
Accordingly, Mahindra has already started development of another vehicle at MANA, which would see support from MRV, Pininfarina and Mahindra’s local design centre, said Pawan Goenka, managing director of Mahindra, without disclosing further details.