Ford Motor Company (NYSE: F) on Tuesday said it will shift most of its operations in India to Mahindra & Mahindra Ltd. as part of a joint venture with the Indian carmaker. The deal, valued at USD 275 Million, awards Mahindra 51% of Ford’s business in India.

The joint venture will introduce three new utility vehicles under the Ford brand, beginning with a new midsize sports utility vehicle. Another area of focus for the joint venture will be electric vehicles, the companies said.
The joint venture with Mahindra, according to Ford, is the next step in a strategic alliance forged between the two businesses in September 2017. It is expected to be operational by mid-2020, subject to regulatory approvals. The joint venture will be operationally managed by Mahindra, and its governance will be composed equally of representatives from Mahindra and Ford.

“Mahindra and Ford coming together is a testament to the long history of cooperation and mutual respect between the two companies. Our combined strengths – Mahindra’s expertise in value-focused engineering and its successful operating model, and Ford’s technical expertise, global reach and access to future technology – are a potent recipe for success,” said Anand Mahindra, Chairman at Mahindra Group.