Ford-Mahindra to build new XUV500-based Creta-Compass SUV rival, new electric sedan for India

Mahindra and Mahindra Ltd and Ford India have jointly signed a non-binding memorandum of understanding (MoU) stating details of their joint venture. The automotive giants have joined hands to jointly develop new SUVs and a small electric vehicle in the future. Both the companies signed as many as five MoU to make the alliance official.


Under the initiative, both the brands will utilise each other’s strength to launch new products in the Indian and other emerging markets. This will help in accelerating product development and launch newer products quickly in the market.

Ford will use Mahindra’s strength in utility vehicle space to co-develop a new mid-size compact SUV. The new SUV will be built on Mahindra platform but will be developed by both the brands. It will be sold as different vehicles under the Ford and Mahindra badges. The American brand only offers two SUVs in the Indian market and there is a huge gap in the product portfolio in India. The new compact SUV will take on the likes of Hyundai Creta and Jeep Compass and will bridge the gap between the Ford EcoSport and Ford Endeavour.

Both the companies have also agreed to co-develop a new electric vehicle too. Mahindra and Ford will also share powertrains in the new vehicles and this includes supplying of Mahindra powertrains to extend Ford’s product portfolio. The new alliance will also work to develop connected car solutions that will give better-connected infotainment in the future.

Dr Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd, said 

“Today’s announcement is the next step in the collaboration between Mahindra and Ford. Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths. We are excited about the synergies unveiled through this collaboration and the potential opportunities it will bring.”

Jim Farley, Ford executive vice president and president of Global Markets, said,

“Ford is committed to offering the best vehicles, technologies and services that fit the lifestyles and preferences of Indian consumers. Listening to our customers and incorporating their future needs is the core premise of this collaboration. With utility vehicles and electrification as key focus areas, we are glad to see the progress our two companies have made.”

No timeline has been mentioned in the announcement. We can expect the new vehicles rolling out on the Indian roads by mid – 2019.