Mahindra Group and Ford Motor have announced that they are teaming up to develop sports utility vehicles (SUVs) and small electric vehicles as part of several previously announced joint initiatives.
Built on the Mahindra platform, the planned midsize SUV is expected to be sold independently by both companies under separate brand names.
According to a press release issued by Ford Motor, the companies have so far signed five Memoranda of Understanding (MoU) to facilitate the development of key products for consumers in India and other emerging markets.
Mahindra has been operating in the utility vehicles segment in India for seven decades. In February 2018, Mercom reported that Mahindra & Mahindra strengthened its position in India’s electric vehicle (EV) market by winning a contract to supply 1,000 EVs to the Bengaluru-based transport firm Baghirathi Travel Solutions Pvt. Ltd.
Mahindra and Ford have also agreed to evaluate co-development of a compact SUV and EV along with a variety of connected cars for consumers.
Recently, Mercom reported that India’s expanding EV sector was becoming increasingly competitive as more national and international players are being drawn into it.
A recent study by Niti Aayog and the Rocky Mountain Institute highlighted the potential of India’s EV market. Researchers found that India could account for more than one-third of the global market for EV batteries by 2030 if it became a 100 percent EV nation.
The Minister for Power, R.K. Singh, recently chaired a meeting with battery manufacturers in New Delhi to discuss the creation of an ecosystem that would incentivize battery manufacturing. In the meeting, Singh assured battery manufacturers that the government would take all possible measures to incentivize the sector.
The immense potential of India’s emerging EV market is piquing the interest of investors and automakers around the globe. India’s EV segment, which was largely dormant in recent years, finally appears poised to take off.
Image credit: By Visitor7 [CC BY-SA 3.0], from Wikimedia Commons