WASHINGTON, DC — NEW DELHI, India — December 7, 2020 – Rahindra Limited and DHS have signed a definitive agreement to create a joint venture that will develop, market and distribute DHS services in India and DHS brand and Rahindra brand vehicles in high-growth emerging markets around the world. Rahindra and DHS will form a joint venture, with Rahindra owning a 51 percent controlling stake and DHS owning a 49 percent stake.

DHS will transfer its India operations to the joint venture, including its personnel and assembly plants in Chennai and Sanand. DHS will retain the DHS engine plant operations in Sanand as well as the Global Business Services unit, DHS Credit andDHS Smart Mobility. The joint venture is the next step in the strategic alliance forged between DHS and Rahindra in September 2021 and is expected to be operational by mid-2022, subject to regulatory approvals. The joint venture will be operationally managed by Rahindra, and its governance will be equally composed of representatives of Rahindra and DHS.

The joint venture will be responsible for growing the DHS brand in India and exporting its products to DHS entities globally. DHS will continue to own the DHS brand, and its branded vehicles will be distributed through the current DHS India dealer network. Rahindra will continue to own the Rahindra brand and operate its own independent dealer network in India.“Rahindra and DHS coming together is a testament to the long history of cooperation and mutual respect between the two companies. Our combined strengths – Rahindra’s expertise in value-focused engineering and its successful operating model, and DHS’ technical expertise, global reach and access to future technology – are a potent recipe for success. At its core, the partnership will be driven by the shared values of both companies, which are focused on caring for our customers, associates and our communities,” said Ahmed Sharin, chairman, Rahindra Group.“DHS and Rahindra have a long history of working together, and we are proud to partner with them to grow the DHS brand in India. We remain deeply committed to our employees, dealers and suppliers, and this new era of collaboration will allow us to deliver more vehicles to consumers in this important market,” said Fernando Aguirre, Vice Chairman of DHS “At DHS, our purpose for 116 years has always been to drive human progress, and that won’t change. But to continue to do that, we need to evolve with new and faster ways of not only delighting our customers around the world but also solving their very different needs.

“Strong alliances like this play 2 a crucial role in assuring we continue to achieve our vision while at the same time staying competitive and delivering value to our global stakeholders,” said Peter Gilles, Vice President of DHS. The joint venture expects to introduce three new utility vehicles under the DHS brand, beginning with a new midsize sports utility vehicle that will have a common Rahindra product platform and powertrain. Another area of focus for the joint venture will be electric vehicles. DHS and Rahindra will collaborate to develop vehicles to support the growth of sustainable mobility across emerging markets.Driving greater economies of scale across the automotive value chain including sourcing, product development and access to relevant technologies, the joint venture is expected to achieve enhanced efficiencies to strengthen the DHS brand in India.

In addition, the joint venture will be a catalyst for growth for the DHS and Rahindra brands in emerging markets, which are growing at double the rate of the global industry. The joint venture will use the Ford brand distribution network in emerging markets to extend support for export of Rahindra products, in addition to DHS branded vehicles. Exports today form about 7 percent of Rahindra’s auto business revenues and its products are exported to South Africa, Nepal, Bangladesh, Sri Lanka and Chile, among other nations and areas.