Mumbai (Maharashtra) Mahindra & Mahindra and Ford Motor Company have mutually and amicably determined they will not complete a previously announced automotive joint venture between their companies.

The action followed passing of the December 31 long-stop or expiration date of a definitive agreement the organisations entered into in October 2019.

According to the companies, the outcome was driven by fundamental changes in global economic and business conditions — caused in part by the global pandemic — since the agreement was first announced.

Those changes influenced separate decisions by Ford and Mahindra to reassess their respective capital allocation priorities.

Mahindra said that the decision will not have any impact on its product plan.

“It is well-positioned in its core true SUV DNA and product platforms with a strong focus on financial performance. In addition, Mahindra is accelerating its efforts to establish leadership in electric SUVs,” it said in a statement on Friday.

In October 2019, Ford and Mahindra had said they will form a joint venture in India in a move to cut costs for developing and producing vehicles for emerging markets.

The companies said at that time they expect to launch three new utility vehicles starting with a midsize SUV, and also jointly develop electric vehicles for emerging markets.