Ford Motor announced on Oct. 1 that it has agreed to sell a majority share (51%) of its business in India to Mahindra & Mahindra as part of a $275 million joint venture, according to a report by CNBC. This venture will develop, market and distribute Ford brand vehicles in India and Ford brand and Mahindra brand vehicles in “high-growth emerging markets around the world,” according to Ford.
As part of the deal, Ford said it will transfer its India operations to the joint venture, including personnel and assembly plants in Chennai and Sanand. Ford will keep an engine plant in Sanand. Ford employs roughly 14,000 people in India.
The venture is likely seen as a blessing by Mahindra, who saw a 2% drop in tractor sales this past month after being down 15% in August, according to a report by Business Standard. Mahindra sold 37,011 tractors in September, compared to 37,581 units for the same period last year. Domestic sales rose slightly by 0.3%, with 36,046 units sold in Sept. 2019 compared to 35,953 units in Sept. 2018. Exports for September were at 965 units, down 41% compared to the same time period last year.
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