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According to foreign media reports, due to Ford's failure to achieve substantial development in the Indian market for more than 20 years, Ford transferred its assets in India to a joint venture with Mahindra.

Ford is to set up a $275 million joint venture in India with Mahindra, which has rescued its declining car business in India. Under the agreement, Ford owns 49% of the joint venture, while Mahinda owns 51% of the company.

It is understood that after the establishment of the company, Ford's business in India will be transferred to a joint venture, including the staff and assembly plant in Sanghe, Chennai. However, the joint venture does not include Ford's global business service department and the Sanaende plant, which produces engines exclusively for export.

In fact, as early as the end of September, there were media reports that Ford might form a joint venture with Mahindra, Mahindra CEO Anand. Mahindra has said that being able to walk with Ford shows that the two companies have a tacit understanding. Mahindra's advantage lies in its successful operating model, while Ford has technology and technology reserves.

As a transaction, the joint venture will develop three Ford brand crossover models in the future, and Ford's car platform and Mahindra's electric power system will be maximized in the follow-up development.

It is understood that the Indian auto market is mainly dominated by Suzuki's fuel-efficient models, and other car companies face many challenges in the development of the Indian market. It is not just Ford, but other automakers are also finding it harder to develop in the Indian market. GM has previously stopped selling Chevrolet models, and Toyota and Hyundai have suspended production because of huge inventories.

In addition, it was also reported a few days ago that Indian car companies are facing the risk of layoffs due to the downturn in the car market. According to statistics, including automobile manufacturing, parts suppliers, and other automotive industries, layoffs have reached 330000, and it is not expected to recover until 2021.

Although Ford was one of the first automakers to enter the Indian market, it has not been able to get the expected sales in the Indian market. Nonetheless, the company is still not in India as a huge opportunity, and a joint venture may provide Ford with new options.

Ford CEO Hackett believes that Ford has made many mistakes in the Indian market, such as copying the North American business model. "in retrospect, we probably shouldn't have done this (directly replicating the experience). After setting up a new company with Mahindra, we will design competition and market strategies that are more suitable for India in the future. "

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