InvestorQ : How will the joint venture between M&M and Ford be able to take on the car segment competition in India?
Mary Joseph made post

How will the joint venture between M&M and Ford be able to take on the car segment competition in India?

Answer
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sara Kunju answered.
3 months ago


The SUV space could see some more players entering the fray as M&M and Ford Motors enter into a JV to launch two new SUVs in India. The two new SUVs will target the entry level mid-size segment which is currently dominated by Hyundai and Kia. The Hyundai Creta and the Kia Seltos virtually dominate this particular segment of cars in India.

The JV will benefit M&M as it gets a readymade platform developed by Ford while on the other hand, Ford gets to source Bharat Stage VI engines from M&M and can be used for its exports across the world. There will be three versions launched in India including the 1.2L, 1.5L and the 2L models. The 1.2-L Ford Eco Sport is already a bestseller in India.

Unlike the first alliance, in this case both Ford and Mahindra brands would remain independent and their products would be sold through two different channels. Ford will also pay Rs.1000 crore for product development. The alliance will cut down the time to market, reduce capital expenditure in product development and shrink the cost structures.