Ford Motor Company and Mahindra & Mahindra have called off their joint venture owing to the challenges posed by the coronavirus pandemic. 

The companies announced that the decision to call off the venture was arrived at mutually and amicably.

Ford, in a statement, said 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."

Ford and Mahindra had in October 2019 said they would form a joint venture in India to cut costs for developing and producing midsize SUVs and electric vehicles for emerging markets. 

The deadline to finalize a joint venture between the companies lapsed on December 31.

Ford, though, clarified that its India operations will continue as is.

"The company is actively evaluating its businesses around the world, including in India, making choices and allocating capital in ways that advance Ford's plan to achieve an 8% company adjusted EBIT margin and generate consistently strong adjusted free cash flow," the Ford statement said. 

In a statement, Mahindra said that the decision will not have any impact on its product plans.