Automaker Mahindra and Mahindra signed a deal with Ford Motor's Indian unit to jointly develop midsize sports utility vehicles(SUVs) in India, the company said in a regulatory filing on Thursday. Ford and affiliate companies will invest Rs 680 crore ($97.97 million) for the development of the vehicles over a period of 10 years, Mahindra said in a statement. At 12:09 pm, Mahindra & Mahindra shares traded 0.51 per cent lower at Rs 684.60 on the NSE. On the Bombay Stock Exchange (BSE), the stock was down by 0.38 per cent at Rs 684.65 at that time.
The shares of Mahindra & Mahindra moved in a range of Rs 691.95 and Rs 681.25 apiece on Thursday, by afternoon on the NSE. On BSE, it touched an intraday high of Rs 691.15 and intraday low of Rs 682, from its previous close of Rs 687.25.
The new agreement between Mahindra & Ford Motor reinforces the progress made since the announcement of the strategic alliance between the two companies in September 2017, followed by an announcement on powertrain sharing and connected car solutions in October 2018.
"The strategic alliance between the two companies is focused on leveraging the benefits of both companies -- Ford's global reach and expertise and Mahindra's scale and successful operating model in India", Mahindra said in a statement.
Earlier this fiscal year, the alliance also signed an agreement with Mahindra Group to develop and supply a low-displacement petrol engine for use in Ford's present and future vehicles, beginning in 2020. Mahindra and Ford also announced joint development of a telematics control unit.