Automakers Ford Motor Company and Mahindra & Mahindra have signed a new agreement to create a joint venture that will develop, market and distribute Ford vehicles in India.

The announcement confirms that the joint venture will see Ford transfer ownership of its Sanand and Chennai facilities to Mahindra under the new JV. Mahindra owns a 51 per cent controlling stake in the new joint venture and the remaining 49 per cent owned by Ford.

While the companies will co-develop products going forward, they will continue to operate out of independent dealer networks. Ford though will retain the engine plant operations at Sanand along with the Global Business Services unit, Ford Credit and Ford Smart Mobility.

The joint venture will see the brands co-develop new products and this includes three new UVs under the Ford brand starting with a new mid-size SUV that will have a common platform and powertrain shared by the companies. The automakers are also working on the new generation Aspire EV that is currently under development and will use a powertrain sourced from the Indian automaker.

The newly developed products will not only cater to India but several other emerging markets globally. The JV will see Mahindra leverage Ford’s global presence to enter newer markets and export its products.