Mahindra and Ford to co-develop a new mid-size SUV

- New mid-size SUV will be built on a Mahindra-developed platform and powertrain.

- Both companies will focus on product development for India and emerging markets

- Mahindra will also supply a low-displacement petrol engine to Ford Motors.

Mahindra Group and Ford Motor Company, today, strengthened their strategic partnership by signing an agreement to co-develop an all-new midsize SUV for the domestic as well as emerging markets. The SUV will be based on a Mahindra-developed platform and powertrain. The announcement comes after the companies formed a strategic alliance in September 2017, followed by an agreement in October 2018 to share powertrains and develop connected car solutions.

The strategic alliance will focus on leveraging the strengths of both companies – Ford’s expertise and global reach, and Mahindra’s frugal engineering and ability to develop vehicles at limited costs. Both companies will also work towards mutual areas of interests like electrification, product development, distribution and joint development of a telematics control unit. Mahindra will also supply a low-displacement petrol engine that will power Ford cars from 2020.

The engine in question could be the all-new 1.2-litre turbocharged petrol motor that currently powers the Mahindra XUV300. The Mahindra XUV500 is due for a generation update in 2021, and the new mid-size SUV could be the next-gen XUV500. Reports have revealed that the new XUV500 will employ an all-new 2.0-litre BS-VI compliant diesel motor.

The mid-size SUV space in India is bursting with products like the Hyundai Creta, Tata Harrier and Jeep Compass. This segment will also witness the launch of the MG Hector and the production version of the Kia SP2i, and Mahindra and Ford are keen to have a stronghold in this space.