In 2018, Ford and Mahindra announced an initial agreement for a joint venture with equity participation of 51%:49%, to develop a new sports utility vehicle on a Mahindra platform and a small electric vehicle. Subsequently in October, Mahindra and Ford announced the signing of two definitive pacts to share Bharat Stage VI-compliant engines, besides jointly developing connected vehicle solutions for the Indian market. Ford’s assets in India, which includes two factories in Tamil Nadu and Gujarat were supposed to have been moved into the joint venture and would be operated by Mahindra. “The outcome was driven by fundamental changes in global economic and business conditions—caused, in part, by the global pandemic—over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities," the statement further added.

Source: Mint January 01, 2021 05:15 UTC