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Old 1st January 2021, 16:04   #46
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Re: Ford - Mahindra call off their engagement; no JV happening!

What did Mahindra wanted to gain from this JV? Other than Ford helping it to tune its new SUVs? The platform for vehicles, engines were going to be Mahindra. Mahindra can get consultancy for engineering stuff and not have to put its money in JV.
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Old 1st January 2021, 16:17   #47
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Re: Ford - Mahindra call off their engagement; no JV happening!

Quote:
Originally Posted by fhdowntheline View Post
I would'nt place too many bets on Mahindra either. Their brightest prospect in the near term is the most unlikely of the products, i.e. the Thar. I am not sure the XUV series and Scorpio carry the same brand resonance as they did about 5 years ago.

Also I believe that the segmentation between pure rural and pure urban markets for compact SUVs has blurred a bit, with a lot of semi-urban people preferring Cretas and Seltoses as comfortable, "tech laden" products . And as an indigenous manufacturer, Mahindra doesnt have the same brand image amongst urban markets as Tata has (thanks to Tiago/Tigor/Nexon/Harrier). Access to Ford was one way of getting there.
I have a totally contrary view on this.

I feel Mahindra will come out with flying-colours and kicking-ass with the next generation XUV500 and Scorpio in 2021. The Thar’s product refinement/maturity/improvement and the perfect launch with all options like manual,auto,4WD all in both petrol & diesel gives me great confidence about their next launches.

One of the main reasons I say this is because of numbers. The current XUV 500 and Scorpio are at the end of their generation and still going pretty good in terms of sales.

Even though the current XUV 500 feels dated and old, and has brand-new competition cars like MG Hector and Tata Harrier, Still it has been selling an average of around 1000 units Per month over last year.

The ladder frame Scorpio, also at the end of its generation, has been consistently selling more than 3500 units per month over the last year. That is more volumes than the MG has managed with Hector and Hector-plus combined. That means, the Scorpio is very popular in tier 2, tier 3 cities and rural markets, where road conditions need a ladder frame SUV. The Scorpio is and will remain the only ladder-frame SUV for the foreseeable future and that’s a very good differentiating factor to have in India.

So I feel the brand resonance/recognition for both XUV500 & Scorpio is very strong in India. And from the spy shots we have seen, it seems like Mahindra is also putting a lot of tech into these cars.

IMHO, Mahindra and Tata should collaborate to share development costs of powertrains atleast. Because both are Indian companies mostly restricted to the Indian market, not global companies that operate in over 100 global markets(countries) like Suzuki,
Toyota, Hyundai, Kia, VW etc.

If they try to develop everything separately on their own, they will put too much financial pressure on themselves when competing against the partnerships in India like Suzuki-Toyota(Japanese), Hyundai-Kia(Koreans), VW-Skoda-Audi(German), Renault-Nissan, (& Jeep-Citroën in future). Not to forget, the Chinese invasion(pun intended ) has not come yet. They just can’t afford to go it alone against these global behemoths. They need to pool resources like them.
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Old 1st January 2021, 17:56   #48
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by volkman10 View Post
Ford C-SUV for India on track for 2022 launch. To be contract manufactured by Mahindra.

Link
Good news. Love Ford cars and happy that their plans to launch fresh cars remain on track.

Being a corporate lawyer and having represented countless bigwigs in business joint ventures in India, I can speak from firsthand experience that there are a thousand reasons for a JV to be called off and an alternative means of cooperation to be found more suitable. The reasons could be financial, legal, business constraints, cultural and others. Hence just because the JV is called off does not necessarily mean that Ford is out of India, like many here seem to think. Especially since so many recent announcements from Ford about new products for the Indian market have flooded automotive news. Calling off a JV doesn't happen overnight, and such announcements on new products would have been carefully made with full visibility that the JV was not likely to materialise. Especially for listed companies of this size, announcements of this nature area made after lot of deliberation and a fair degree of certainty, since these directly affect the stock value of these companies.

I am in fact happy that Ford is continuing as an independent company and at the same time getting contracted support from Mahindra on engines without sacrificing management control to Mahindra which was bound to happen in a 51:49 JV.

Last edited by arindambasu13 : 1st January 2021 at 18:01.
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Old 1st January 2021, 18:07   #49
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Re: Ford - Mahindra call off their engagement; no JV happening!

Having strayed into some confusing strategies, Mahindra announces a new one.

M&M will focus on true-blue SUVs and not car derived soft-roaders.

Mahindra to focus on SUVs and electric cars

Quote:
Mahindra will focus mainly on large SUVs for its core India market in the short term and move to electric in the medium term, as it charts a new strategy for its automotive business.
Link

Last edited by volkman10 : 1st January 2021 at 18:30.
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Old 1st January 2021, 18:36   #50
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by arindambasu13 View Post
I am in fact happy that Ford is continuing as an independent company and at the same time getting contracted support from Mahindra on engines without sacrificing management control to Mahindra which was bound to happen in a 51:49 JV.
Completely agree on that one. Seems like a positive development for Ford India.
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Old 1st January 2021, 19:44   #51
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Re: Ford - Mahindra call off their engagement; no JV happening!

I personally feel this is good for Indian auto market. For once Mahindra will have to focus on their strengths and create stronger products without any distractions.

On the other hand, hope this makes Ford serious about India. Not very long ago, it was Ford India that was profiting while the North America division was almost bankrupt. And I feel they have the right products in their portfolio. Get the focus man.. competition will be gone.
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Old 1st January 2021, 20:48   #52
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by justwheels View Post
I personally feel this is good for Indian auto market. For once Mahindra will have to focus on their strengths and create stronger products without any distractions.

On the other hand, hope this makes Ford serious about India.
Get the focus man.. competition will be gone.
Agree on both points, better for both to focus on their core areas. Although I still remain doubtful over Ford in India.

Since Mahindra have said they'll focus on SUVs(new Scorpio and XUV500 spy-shots look promising) they should really be looking at a serious rival to the Seltos/Creta lineup. Hope XUV400 is still green after the SsangYong episode.

2021 is getting interesting already
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Old 1st January 2021, 23:52   #53
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Re: Ford - Mahindra call off their engagement; no JV happening!

Seems like the Ecosport with Mahindra 1.2L engine and the Ford XUV500 is still on the cards. It could also be a smoke screen to avoid speculations about them leaving India.

Source: https://www.autocarindia.com/car-new...-launch-419541
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Old 2nd January 2021, 06:31   #54
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by justwheels View Post

On the other hand, hope this makes Ford serious about India. Not very long ago, it was Ford India that was profiting while the North America division was almost bankrupt.
Wait what?

https://www.team-bhp.com/forum/india...-20-years.html (Ford India posts a profit after 20 years)

TL-DR version is that Ford India took 20 years to report a profit and that was mainly due to exports.

Ford India's turnover is a small speck for Ford Motor Company.

After reporting a profit they went and formed a JV with Mahindra. So well, connect the dots.

Quote:
Originally Posted by justwheels View Post
And I feel they have the right products in their portfolio. Get the focus man.. competition will be gone.
Did you mean figuratively or literally?

Either way I don't think they have the resources to focus on India nor do I think people will line up to buy a 20L Ford Focus.

Most global car makers have a large portfolio overseas that they can offer in India. But it's almost impossible for them to sell it at a competitive price point without making heavy compromises. The exceptions are cars like the Mustang.
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Old 2nd January 2021, 10:18   #55
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by arindambasu13 View Post
Hence just because the JV is called off does not necessarily mean that Ford is out of India, like many here seem to think.
So glad to know that Mahindra won't be able to sink Ford and damage my plans of a used Endeavour. Some brands are best left alone because their USPs are far different from what most offer and the audience's taste (just stupid screens, gizmos, no driving dynamics or safety whatsoever). Have had the chance to drive both the Fortuner 2.8 and Endeavour 3.2. Say what you will, the 3.2 handles better than some sedans and the steering is incredible. That aside, I don't know whether fake or not, the entire line-up (3.2, 2.2, 2.0) sound godly when going hard.

Really trying to pin a '16 3.2L in a few years (when it'll be dirt cheap as the audience hates big and nice engines) and I hope I am able to, without the "Mitsubishia" (an unfortunate case where you buy a brand because they are nice but forget/struggle with service/parts because they vamoosed from the country).
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Old 2nd January 2021, 10:42   #56
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Originally Posted by kiku007 View Post
Wait what?

Ford India's turnover is a small speck for Ford Motor Company.

After reporting a profit they went and formed a JV with Mahindra. So well, connect the dots.

Either way I don't think they have the resources to focus on India nor do I think people will line up to buy a 20L Ford Focus.

Most global car makers have a large portfolio overseas that they can offer in India. But it's almost impossible for them to sell it at a competitive price point without making heavy compromises. The exceptions are cars like the Mustang.
Guess the success of any brand depends on how serious they are with that market. We all know that most of these companies came to India to benefit from the low manufacturing cost and not because India was a big market for them. In the journey, we got some good products too, which matured our market. If not for ecosport, the CSUV segment would not have been so popular so soon.
The problem is that these big companies screwed their home markets so badly that it started impacting low volume markets like us. Read GM.

Indian market is a difficult market and I only meant that if Ford can take India seriously with the JV gone, we might see some good products from them. Else not very far that they wrap up like GM. Ecosport still sells healthily and endeavour has its fan following. Get some produccts in between and we can talk competition, else Bye Bye.
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Old 2nd January 2021, 11:02   #57
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Re: Ford - Mahindra call off their engagement; no JV happening!

Japanese Automakers like Honda, Suzuki, etc don't understand the Indian Labours mindset and the American Automakers/Bike Manufacturers GM, Ford and Harley don't understand the Indian Consumers' mindest...
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Old 2nd January 2021, 11:17   #58
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Re: Ford - Mahindra call off their engagement; no JV happening!

Heard from an inside source that Ford is talking to MG for the next JV
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Old 2nd January 2021, 11:36   #59
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Re: Ford - Mahindra call off their engagement; no JV happening!

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Heard from an inside source that Ford is talking to MG for the next JV
Quite possible, Sanand willl be used for contract manufacturing MG's.
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Old 2nd January 2021, 12:58   #60
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Re: Ford - Mahindra call off their engagement; no JV happening!

Hello, I am now a bit worried. I own the 2019 Alturas G4 and the 2017 Figo TDCi.

Last edited by Pkumarblore : 2nd January 2021 at 13:00.
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