Mahindra, Ford Sign SUV Deal for Indian Market

Ford Motor Co. and Mahindra & Mahindra Ltd. have agreed to co-develop a midsize SUV to sell in India and emerging markets.

The vehicle will use an existing Mahindra platform and powertrain. Reuters claims Ford will invest 6.8 billion rupees ($100 million) in the project over 10 years.

The two carmakers also announced they will jointly develop a telematics control unit. They offered no specific about the device, which will be used by both companies to deliver services to connected vehicles.

Ford and Mahindra have a long history of collaboration, beginning with a 50:50 venture formed in 1995 that co-produced cars for a decade.

In 2017 the companies launched a three-year partnership to pursue connectivity, advanced mobility and electric car programs in India. Last year they signed several memoranda of understanding covering those areas, then added two more agreements to develop a small gasoline engine and telematics technology.

Now the companies reportedly are close to a deal that would merge Ford’s operations in India into a joint venture 51% owned by Mahindra.