The Mahindra-Ford venture won't cross badge product for the domestic market, a high M&M government has aforementioned. The sharing of auto design, though, can save over $200 million within the next 2 to a few years, aforementioned folks within the recognize. Pawan Goenka, the administrator of Mahindra & Mahindra, told ET that although the JV partners will bring both businesses closer to product development, sourcing and technology, they will retain independent product DNA without resorting to cross-badging.
“We will not do badge-engineering. The customers will see through it and it just becomes a gimmicky thing," he said.
“We can do all freelance products; if you didn't understand it, you wouldn't recognize that each product area unit supported a standard design. Both firms will retain their own deoxyribonucleic acid and be differentiated, however, share loads in common," he added.
For the overseas market, however, the U.S.A. partner is considering victimization Mahindra product and re-badge them as Ford to expand its rising market business, Goenka said.
To be sure makes an attempt at cross badging by the Volkswagen cluster with Vento and also the fast sedan or the Renault-Nissan alliance with Duster and Terrano SUV, and the recent effort by Maruti Suzuki and Toyota to rebadge the Baleno hatchback as Toyota Glanza has wedged the individual brands. As product lifecycles shrink and also the novelty of recent product wane inside six months, vehicle manufacturers have had to perpetually upgrade and launch a new product. Goenka aforementioned the squad can facilitate accelerate product launches and plug gaps in its portfolio.
It was declared earlier that a 'C segment' SUV supported the new generation Mahindra XUV 500 design — codenamed W601 — are going to be shared with Ford, that is internally calling it as W605. The sharing of a 'B phase mid-size SUV' supported Ford design with Mahindra, is within the final stages of approval. Mahindra will also source Ford's Aspire EV.
By sharing vehicle design, each the businesses can on an individual basis save regarding thousands of rupees in large integers on one product every. Mahindra has lost its leadership position within the utility vehicles phase to Maruti Suzuki and Hyundai, but with more than a dozen product launches planned in the coming year, it aims to claw back market share with competitive product at frequent intervals and conjointly create cash thanks to the synergies of common platforms and sourcing.
Additionally, Mahindra-Ford's combined sourcing of Rs 47000 can add another 1-2% savings to the fabric value and directly raise the bottom line of the squad company.
Mahindra conjointly gets access to Ford's international sourcing capability, together with China and other rising markets, helping it in high-tech product sourcing where it has limited access. In domestic sourcing, however, Mahindra clearly has a grip.
Beyond joint development, there's loads of labor happening in plotting the new growth markets of the long run.