Ford forms Joint Venture with Mahindra for India business

01 October 2019 - 15:24 By Reuters
Ford and Mahinda will form a joint venture in India that will develop, market and distribute Ford-branded vehicles there.
Ford and Mahinda will form a joint venture in India that will develop, market and distribute Ford-branded vehicles there.
Image: Krisztian Bocsi/Bloomberg via Getty Images

Ford Motor Co and Mahindra & Mahindra will form a joint-venture company in India valued at $275m (about R4.2bn) that will develop, market and distribute Ford-branded vehicles in the country, the two companies said on Tuesday.

The companies have for months been negotiating the deal which will see Ford hold a 49% stake in the new entity, while Indian rival Mahindra will own 51%, Reuters reported in April.

By shifting to a joint venture, Ford is changing its strategy in a country where it has long run an independent operation. India's car market is dominated by Asian firms such as  Suzuki and Hyundai.

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