Skip to main content

Ford expected to end independent India operations with new Mahindra deal

The US-based automotive giant, Ford, is close to a deal with Mahindra & Mahindra in order to establish a new joint-venture firm in India that is expected to see the automaker stop independent operations in the country, according to Reuters.

Ford has become the latest automobile manufacturer to decrease its operations in India following General Motors decision to stop selling its cars locally at the end of 2017.

Over the past 20 years, Ford has invested more than $2bn in India, however, has just 3% of the market share in India.


Following the terms of the new deal being discussed, Ford is expected to establish a new unit in India to hold a 49% stake. According to a Reuters’ source, “It’s like a partial exit (for Ford from India).”

After concluding the deal, the source added that Ford’s Indian unit will transfer the majority of its current automotive business to a new entity, which will include employees and assets.

It is anticipated that the deal will close within the next 90 days, with the value of the transaction not disclosed yet.