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US carmaker Ford Motor and Indian car manufacturer Mahindra had entered a partnership last year that the latter will acquire former’s operations in India while the American carmaker was to help Mahindra capture several international markets.

Why Ford Ended its Partnership with Mahindra?

By the end of last year, the two automakers together decided to end the joint venture for many reasons, including Ford’s reassessment of its global plans as the Indian market hasn’t been rewarding to the company in recent times.

The company’s CEO, Jim Farley, reiterated the importance of strenghtening the company’s global positioning on priority while shelving its expansion plans in India with Mahindra, owing to the financial troubles arising out of the Covid-19 pandemic.

Ford Puts its Plans Temporarily on Hold

Earlier this year, Ford India shelved all its plans with Mahindra for good while devising a new plan for India. However, the latest media reports confirm that the American company has decided to end all ties with Mahindra.

Ford’s Joint Venture Plans for Its New SUVs

Back in October 2019, Ford and Mahindra had made plans to run a joint venture in India to cut expenses for making cars in emerging markets. Ford had started working on three new SUVs in India in association with Mahindra.

One of these was a compact SUV that was destined to be launched in India next year. Based on the XUV500’s platform, the Ford C-SUV was expected to be designed and built by Mahindra. However, it now appears like Ford intends to work alone with this product in the subcontinent.

Ford Territory SUV – Future Plan

It is now reported that the American carmaker could develop its future SUVs based on the product design of Ford Territory SUV sold in China.

The joint venture dictates that the two upcoming Ford SUVs were supposed to use Mahindra engines. However, Ford has dropped this plan while deciding to employ its own engines for these new SUVs.

Furthermore, Mahindra was expected to ship its XUV 300, a 1.2-litre turbocharged petrol engine in Ford’s EcoSport. Nevertheless, Ford is expected to persist with its existing 1.5-litre powertrain for its upcoming SUVs.

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