With the signing of five memorandum of understandings with Ford Motor Company last week, it has been decided that Mahindra & Mahindra (M&M) would supply its own platform for a mid-size sports utility vehicle (SUV) coming from the US-based brand.

This SUV, which is expected to be of the size Mahindra Scorpio or Mahindra XUV 500, will be launched in 2021, said Pawan Goenka, Managing Director, M&M, speaking to CNBC-TV18.

「We have had these alliance teams working since the last six months to pin down what are the things we could be working together. The MoUs are signed to work on some specific things. The C-SUV will be a Mahindra platform on which there will be a Ford vehicle to be launched somewhere in 2021 or thereabouts. There is another SUV (B-SUV) that we are right now working to see if we should have a common platform,」 said Goenka.

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The B-SUV segment is the compact SUV space where Maruti Suzuki is the market leader with the Vitara Brezza, followed by the Tata Nexon and Ford EcoSport. Mahindra has had limited success in this segment despite having two products TUV300 and KUV100.

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Ford has limited presence in India despite being in the market for more than two decades. All its products except the EcoSport have failed to make a mark in the domestic market.

Besides products the two companies have agreed to work on powertrains (engines and transmissions) which is where the Mumbai-based company is creating a new family of petrol and diesel powered engines that will meet Bharat Stage VI emission norms.

「There is engine sourcing agreement where Mahindra will supply to Ford for some of their India products and potentially for their global portfolio」, added Goenka.

The non-binding agreements signed in Chennai where both companies have their plants also involves collaboration on co-development of a suite of connected car solutions as well as share work on electric vehicles.

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