Mahindra & Mahindra may buy the troubled American auto company Ford’s Indian business. An agreement may be signed between the two soon. News agency Reuters has given this news by quoting sources.
According to the news, the two companies will jointly form a joint venture with Mahindra holding 51% and Ford holding 49%. According to the agreement, Ford will hand over most of its assets and employees to the new company, but Ford will keep the engine plant of Sanand, Gujarat.
According to the agreement, Ford’s manufacturing plants in Chennai and Sanand can be handed over to the new joint venture. These two plants have a combined production capacity of 4.40 lakh vehicles annually. Through this joint venture, cars can be made under the Ford brand name and they will be sold in countries other than India.
Ford and Mahindra spokespersons have currently declined to provide any details on the deal, but Ford has admitted that it is trying to develop ‘strategic cooperation with Mahindra to increase commercial and manufacturing capabilities’ Is working
Significantly, Ford’s business in India is not doing well and there has been a lot of discussions that Ford is preparing to consolidate its business in India. However, Ford has decided to stay in Indian business through a joint venture instead of completely closing its business here.
It is important to note that the auto sector in India has been troubled for the last one year because there is a continuous decline in sales. Ford has invested more than $ 2 billion in India. It currently holds just 3 percent of the Indian market. Ford India sales fell 31.4 percent in August and the company has sold only 5,517 vehicles in the domestic market.