Ford, Mahindra Partner on Mobility Projects

Ford Motor Co. and Mahindra & Mahindra Ltd. have agreed to seek ways over the next three years to collaborated on advanced mobility, connectivity and electric-car programs for the Indian market.

Bloomberg News says the alliance, which was arranged under new CEO Jim Hackett, provides Ford a way to revive its weak presence in India. The companies previously cooperated in a carmaking venture that ended in 2005. Ford and Mahindra currently control about 3% and 8% of India’s car market, respectively.

Last September then-CEO Mark Fields ordered a review of Ford’s entire India operations because of its poor performance. But the company reasserted its commitment to India two months later, buoyed by a surge in demand for its SUV/crossover vehicles in India.

As a result, Ford is building a $195 million product development and advanced business systems center in Chennai. When it opens in 2019, the facility will consolidate some 9,000 Ford employees currently working at six locations in Chennai. Ford says the facility will become its second-largest IT operation after the one at its U.S. headquarters.

Ford said at the time that among the center’s projects would be developing advanced analytics and modeling tools for mobility and connected-vehicle services.