Ford India Will Not Use Mahindra-Sourced Engines In Its Future Products: Report

Ford India has reportedly decided to not use Mahindra-sourced powertrains in its future products, which include the Hyundai Creta rivalling compact SUV, codenamed BX772, and a new sub-4 metre SUV codenamed - BX744. Both the SUVs were slated to be launched in Financial Year 2022-23 and were supposed to use powertrains developed by Mahindra & Mahindra. However, post the two carmakers' decision to shelve their joint venture, Ford appears to have decided to rely on its own set of engines and products for India.

When reached out to Ford India, the company spokesperson said, " We announced on Dec 31 2020 that Ford and Mahindra had jointly decided not to proceed with the proposed JV. As part of winding down our relationship, a number of cooperative product programs will no longer proceed. We are currently re-scoping those product programs."

Also Read: Ford Puts Projects With Mahindra On Hold As It Reassesses India Strategy: Report

The upcoming Ford SUV, slated to be launched in FY 2022-23 and were supposed to use powertrains developed by Mahindra

It has been reported that the American car manufacturer has asked its vendors to hold work on the two upcoming projects until August 2021 as it plans to source powertrains from within the Ford family. The report also claims that this decision will delay the launch of the two new SUVs by about 6 months. Because the new compact SUV was expected to be based on the XUV500's platform, it's also being said that the company is re-evaluating alternatives for the SUV, and might even go with one of their own products, like the Ford Territory, instead of a Mahindra product.

Also Read: Anurag Mehrotra Returns To Ford India As President And Managing Director

Reportedly, Ford in even considering bringing in its fully electric Mustang Mach E under the 2500 units import rule

Meanwhile, Ford is also said to be working on some updates for its existing product line-up, like the EcoSport SE variant that was introduced in India recently. The carmaker is also evaluating the possibility of bringing in some of its global nameplates to India, under the import rule that allows global brands to bring in 2500 units to India without homologation. That could include the company's fully electric Mustang Mach E. Furthermore, the EcoSport, which was supposed to get Mahindra's G12 powertrain, will now be launched later this year with Ford's Dragon series engine.

Also Read: Ford, Mahindra Call Off Auto Joint Venture

In 2019 Ford Motor Company and Mahindra & Mahindra has decided to enter into a strategic partnership to co-develop products for India and other emerging markets, under a new joint venture. However, a few months ago, the companies called off the JV due to the challenges caused by the COVID-19 pandemic. It was said that the decision was driven by changes in the global economy over the last 15 months, causing both to reassess their capital allocation priorities.

Source: ET Auto