Ford, Mahindra scrap JV; Ford to continue independently

According to the companies, the outcome was driven by fundamental changes in global economic and business conditions – caused, in part, by the global pandemic – over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.

Back in October 2019, Ford and Mahindra had signed an agreement to create a joint venture to develop, market and distribute Ford cars in India. Now, the two companies have decided to call off this joint venture.

The companies had decided to finalize the joint venture by December 31, 2020. However, the challenges posed by the outbreak of the Covid-19 pandemic have forced them to part ways.

According to the companies, the outcome was driven by fundamental changes in global economic and business conditions – caused, in part, by the global pandemic – over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.

Ford has said that its independent operations in India will continue unchanged. The company is evaluating its businesses around the world, including in India.

As part of the deal with Mahindra, Ford would transfer its India operations to the joint venture. The new entity would introduce three new utility vehicles under the Ford brand. With the joint venture scrapped, these plans will not materialise.