India's auto conglomerate  Mahindra & Mahindra (M&M) on Friday said they have decided to scrap a previously announced automotive joint venture (JV) citing fundamental formations in global economic and business conditions caused, in part, by the coronavirus pandemic. While Ford said it will continue its independent operations in India as it is, M&M said the decision will not have any impact on the company's product plan.

The two companies decided they will not complete a previously announced automotive joint venture between their respective companies. The decision follows the passing of the December 31, 2020 'longstop' or expiration date of a definitive agreement the organisations entered into in October 2019, Ford Motor Company said in a statement.

The outcome was driven by fundamental changes in global economic and business conditions – caused, in part, by the global pandemic – over the past 15 months. Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities, it added. Ford further said its independent operations in India will continue as is.

Reacting to the development, Shares of Mahindra & Mahindra  Ltd touched an intraday high level in share price, at Rs 743 per share on National Stock Exchange on Friday.

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