Mahindra To Focus On SUVs, Electric After Ending Ford JV Talks
1 mins read
Published on January 2, 2021
Mahindra & Mahindra Ltd will focus on developing its core portfolio of sport-utility vehicles (SUVs) and their electric version, a senior executive said on Friday after the company ended joint venture talks with Ford Motor Co. Anish Shah, the deputy managing director, said 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.
Also Read: Ford, Mahindra Call Off Auto Joint Venture
"We are going back to our core," Shah, who will take over as managing director from April, told Reuters.
"We are going to look ahead at how we can accelerate our investment in electric and really start moving to the new age. We clearly hold the ambition to be a global brand and there again the electric journey is an important one," Shah said.
Mahindra's high-end electric vehicle Pininfarina Battista is a starting point, Shah said, adding that the automaker would look at developing more electric platforms in India to build SUVs for the local and export markets.
Mahindra and Ford late on Thursday called off their automotive joint venture due to the COVID-19 pandemic, which prompted them to reassess their capital allocation priorities. The two companies had plans to jointly develop vehicles for manufacture in India for local sales and export to dozens of emerging markets under the Ford badge.
However, Mahindra was not convinced the venture would generate returns needed to justify the higher investment it would have to make in a post-pandemic world.
Shah told reporters Mahindra had initially planned to invest about 30 billion rupees ($410.68 million) in the venture, half of which would have been equity.
Now, Mahindra plans to invest the money in electric vehicles, he said, adding it is open to collaborating with Ford in the future, including in EVs.
The review is part of a broader restructuring at Mahindra under which the company is exiting several loss-making businesses, including its South Korean unit Ssangyong Motor, to focus on profits and cash flow.
Mahindra said on Friday it is close to agreeing a deal with a potential investor for its majority stake in Ssangyong, which has been placed in receivership. Its total investment in the SUV-maker is $264 million and the extent of the write-off would depend on what deal is agreed, Shah said.
The automaker last year also pulled the plug on its U.S. electric scooter unit GenZe and aviation business GippsAero. Its other global subsidiaries include Peugeot Motorcycles.
Mahindra sold close to 190,000 passenger vehicles in India in the last fiscal year ended March 31, giving it close to 7% share of the market, industry data shows.
Great Deals on Used CarsView All Used Cars
- 8,000 km
- 88,000 km
- 53,763 km
- 72,000 km
- 24,110 km
- 20,156 km
- 64,000 km
- 65,000 km
- 85,000 km
- 70,123 km
Popular Mahindra Models
-14852 second ago
The Swift will be powered by a 1.2 litre, 3-cylinder petrol engine that puts out 81 bhp and 108 Nm of torque
-14108 second ago
The Revuelto is powered by a 6.5 litre V12 engine mated to three electric motors that churn out a combined 1001 bhp
-10414 second ago
Kia India takes the wraps off its new EV charging initiative, the K-Charge. It will be available to non-Kia EV owners as well.
-9876 second ago
Milestone was reached about 7 years after the plant commenced operations in February 2017.
-7986 second ago
Hero MotoCorp and Ather Energy come together to form a partnership for an inter-operable fast-charging network in India.
-5089 second ago
Kawasaki is offering discount vouchers on the Vulcan S, Ninja 400, Ninja 650 and Versys 650 in its lineup with benefits going up to Rs. 60,000
-3462 second ago
India-spec compact SUV to get a different design from the model sold in global markets.
-3087 second ago
FADA reports that retail sales for automobiles in India were at an all-time high, with 28.54 lakh vehicles sold, surpassing 25.69 lakh vehicles sold in March 2020, when the industry transitioned from BS4 to BS6.
45 minutes ago
Honda Cars India is offering discounts and benefits of up to Rs 89,000 on the City and Amaze, depending on the variant
17 hours ago
The price hike is in relation to increased commodity prices and the rising costs attributed to inflation
1 month ago
The company's overall auto sales for the month reached 80,679 vehicles, marking a 32 per cent growth, including exports
2 months ago
The company sold 41,267 utility vehicles in the Indian markets marking a 20 per cent growth year-on-year.
4 months ago
The SUV maker sold a total of 66,124 vehicles, including exports
1 year ago
Mahindra sold 30,238 utility vehicles in November this year as compared to 19,384 units sold in the same month last year, recording a growth of 56 per cent.
1 year ago
Increasing preference for SUVs opened new opportunities for SUV focused automakers who in the SUV space have dethroned India's largest carmaker, gaining the top spot.