Ford India can possibly end Solo Operations and continue as Ford-Mahindra JV in Future
Date: April 10, 2019 by Gagan Modi
Ford India possibly can end up solo operations from Indian Market in near future and begin journey as Ford-Mahindra JV
Ford - Mahindra JV
Ford India as per media dailies has a big change in future Strategy
As per it. Ford can end up with Joint Venture with Mahindra and act as Ford Mahindra in India as a new entity. The JV Share will be in 49% to Ford with 51% to Mahindra, where Mahindra will be what having controlling stake in this JV
Thus the end result will be Ford will cease operations on stand alone basis in Indian Market. Even
» Ford will transfer all its assets, employees to this New Business Unit
» Ford existing customers will continue to get support on Spare, Service from this new JV Business unit
The biggest benefit will be sharing of technical know-how so as to get the best synergies from both the Manufacturers.
However, this is not the first time Ford has done JV in Asian Market. Earlier they did it with Changan in China in 50:50 essentially known as Ford Changan but the ground reality is that in last 7 years in 2019 - sales at its all time lows and even profitability is at its bottom in 2019
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Important to note that Ford India despite of been 20 year Old brand in India has launched series of Models - Escort, Ikon, Fiesta, Mondeo, Ford Fusion has discontinued all its previous models and is riding on Figo introduced in 2010 and later on with Ecosport, Aspire, Freestyle and Endeavour. The Sales are low at meer 7500 Units on an average with just 3% Market Share
Despite of been seasoned brand Ford India even after spending 20 years in Indian Market is sustaining due to Ecosport which accounts for 50% of Sales of Ford India as Manufacturer.
Well for Ford Fans this may be bit downer as the future is uncertain and if the JV Business of Ford and Mahindra goes on similar lines as to what seen in Ford and Changan in China - it can be a great upset for Ford lovers.
Update - 10th April Evening
As per News report - Ford India stated that they have no intention to exit from Indian Market and is speculative News. However - there is no as such mention too of whether Ford proposed JV with Mahindra is incorrect. Rather is referred that teams from both companies to work together to develop avenues of strategic cooperation that help to achieve commercial, manufacturing and business efficiencies.