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Mahindra & Mahindra and Ford Motor Company have been called off their much-awaited joint venture in India due to significant changes in the global business environment caused by the pandemic.
The two carmakers have mutually and amicably determined not to complete automotive joint venture plans announced in October 2019.
According to the companies, the fundamental changes in global economic and business conditions over the past 15 months influenced separate decisions to reassess their capital allocation priorities.
Ford said its independent operations in India would continue as is.
Mahindra & Mahindra, which would still produce cars for Ford through contract manufacturing tie-up, said that cancelation of the JV would not impact its product plan, adding that it is accelerating efforts to establish leadership in electric SUVs.
Ford Motor is actively evaluating its businesses worldwide, including in India, to achieve an 8 percent-company adjusted EBIT margin and consistently generate strong adjusted free cash flow.
