Proposed agreement will result in Blue Oval retaining 49 percent ownership in its Indian operations.
If the agreement goes, it will be the last step in Ford Managing Director Jim Hackett's station to bring about the bleeding from the company's foreign subsidiaries.
According to Bloomberg Ford is currently in discussions with Mahindra about a joint venture in India.
The proposed agreement would cause Ford to donate most of its Indian assets to the new company, of which it would own 49 percent. Both companies will have equal board representation and voting rights in joint ventures.
Under the current proposal, Ford is seeking to retain an export-focused engine plant and its business services division as a wholly owned entity.
It is unclear how much Mahindra would pay Ford for its assets, but it is understood to be significantly less than the roughly $ 2 billion ($ 3 billion) it has invested in recent years.
Despite the investments, Ford has struggled to gain a significant foothold in what was once one of the world's fastest growing car markets.
Ford's current market share is below three percent, and it is well behind leader Suzuki, who is responsible for at least half of all new cars sold there.
Ford is not the only car manufacturer that has failed to break Suzuki's dominance, with Hyundai the only company to make significant progress.
Above: Ford Ka.
Chevrolet withdrew from India in 2017, while Toyo ta has purchased a minority stake in Suzuki and entered into a technical alliance with the smaller manufacturer, with rebuilt Suzukis now being sold at Toyota dealerships and Toyota's excess production capacity being used for Suzuki models.
While Ford has remained consistently profitable over the last few years, most, if not all, of the black ink is thanks to the US market, where the F-150 and large SUVs have a high profit margin.
The company's foreign subsidiaries, including its South American, European and Chinese operations, have lost money.
In Europe, Blue Oval closes factories and throws out unprofitable model lines, such as the relocations. For China, Ford leans more strongly on its local product manufacturing partner.
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Ford to put its Indian business in joint venture Mahindra – report