Skip advert
Advertisement

Ford and Mahindra enter new partnership

Ford has joined forces with Mahindra in a deal that will allow it to explore emerging markets

Ford Edge - Ford badge

Struggling Ford of America and rising star Mahindra of India are set to join forces, with a focus on co-developing compact electric vehicles. 

The proposed “strategic alliance” partnership will give the Blue Oval improved access to the Indian car market, which is on course to overtake the USA and become the third largest car market in the world.

Advertisement - Article continues below

Best electric cars on sale right now

In turn, the India firm - in conjunction with its daughter company, SsangYong of South Korea - hopes to crack the traditional but still lucrative American market which is currently dominated by pick-ups and SUVs built by the likes of GM, Ford and Jeep. But high US labour costs mean such vehicles have become increasingly expensive. 

SsangYong Musso - front three quarter

This leaves the door open for Ford to help SsangYong wade-in with more affordable offerings that still feature the large engines and durability that increasingly cost-conscious American consumers demand. Effectively, SsangYong could become Ford’s budget SUV brand.

"The agreement of intent between the two companies [Ford and Mahindra/SsangYong] will allow each to leverage their mutual strengths during a period of unprecedented transformation in the global automotive industry," they said in a joint statement.

Both firms need to continue designing, building and selling millions of petrol and diesel vehicles in as many countries as possible during the coming years. While acknowledging that India is on course to become the third largest car market in the world, Ford also accepts that it will have a comparatively small slice of this giant Indian cake - unless it gets into bed with Mahindra.

As if not more important will be much-needed co-operation between Ford, Mahindra and SsangYong to share costs in areas such as product sourcing, planning and development.

But the ultimate goal for the American firm is to ensure that it has small and large driverless and drivable electric vehicles on sale globally from the 2020s onwards. With its new Mumbai and Seoul-based collaborators, Ford is hopeful of becoming a stronger, more active contender on a world automotive stage.

Do you think the Ford/Mahindra deal is a good thing for the US brand? Let us know below...

Skip advert
Advertisement
Chief columnist

Mike was one of the founding fathers of Auto Express in 1988. He's been motoring editor on four tabloid newspapers - London Evening News, The Sun, News of the World & Daily Mirror. He was also a weekly columnist on the Daily Telegraph, The Independent and The Sunday Times. 

Find a car with the experts

Skip advert
Advertisement

Recommended

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
New cars coming soon header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
23 Jun 2025
Best fast Fords - the greatest high-performance cars ever built by the Blue Oval
Best fast Fords

Best fast Fords - the greatest high-performance cars ever built by the Blue Oval

We reveal our favourites, from hot hatches to coupés and track legends
Best cars & vans
19 Jun 2025
Best electric car deals: today's top discounts and incentives on new EVs
Best electric car deals - header image

Best electric car deals: today's top discounts and incentives on new EVs

Making the switch to an EV? These car brands have an offer (or two) for you
Best cars & vans
29 May 2025
The best ever popemobiles
Best ever popemobiles

The best ever popemobiles

For nearly 100 years Popes have had bespoke transport – here we chart the astonishing history of the popemobile
Best cars & vans
8 May 2025

Most Popular

Range Rover Sport SV gets massive £35k price drop as it enters series-production
Range Rover Sport SV Black - front

Range Rover Sport SV gets massive £35k price drop as it enters series-production

There’s also a new SV Black trim, and a Range Rover Sport Stealth Package for non SVs
News
1 Jul 2025
Arrivederci Roma: new Ferrari Amalfi slots in as brand’s latest entry-level model
Ferrari Amalfi - front static

Arrivederci Roma: new Ferrari Amalfi slots in as brand’s latest entry-level model

A slick new look and more power are the headlines for Ferrari’s new baby, but it’s probably some simple new buttons that will get customers’ attention
News
1 Jul 2025
Geely is coming to the UK, and its assault will start with EX5 SUV
Geely EX5 - front

Geely is coming to the UK, and its assault will start with EX5 SUV

Geely has looked to Lotus to ensure it's new electric SUV lives up to our driving expectations
News
2 Jul 2025