Press Release

Ford Credit Announces Indian Operations

10/25/96

Ford Credit to Launch India Operations

MUMBAI, Oct. 23 -- Ford Credit, Mahindra & Mahindra
Limited and Kotak Mahindra Finance Limited have announced the launch
of two, new automotive financing joint ventures.

One company, FORD CREDIT KOTAK MAHINDRA LIMITED, will provide
financing for dealer inventories and retail sales for Ford
dealers. Ford Credit owns 55 percent of the new company, with Kotak
Mahindra Finance holding a 35 percent stake and Mahindra & Mahindra
the remaining 10 percent.

The second company, KOTAK MAHINDRA PRIMUS LIMITED, will offer
financing for vehicles of other makes. Kotak Mahindra Finance owns 60
percent and Ford Credit owns 40 percent.

Ford Credit is the largest company in the world specializing in
automotive finance. Mahindra & Mahindra is a leading vehicle
manufacturer in India, and Ford Motor Company's partner in a vehicle
program.  Kotak Mahindra Finance is India's leading automotive finance
company.

"Ford Credit is very pleased to be entering this rapidly expanding
market," said Ford Credit President Edsel B.  Ford II. "We look
forward to working with our new partners and our dealers."

Bharat Doshi, executive director of Mahindra & Mahindra, said, "Our
partnership with Ford Credit is a significant element of our
relationship with Ford Motor Company and our joint commitment to
provide new, world-class vehicles to Indian consumers."

Uday Kotak, vice chairman of Kotak Mahindra Finance, added, "In this
growing market, we see great opportunities ahead for these new joint
ventures. This strategic partnership with Ford Credit will further
strengthen our franchise."

With the addition of India, Ford Credit has operations in 33
countries. Its new Asia-Pacific headquarters also provides services to
operations in Thailand, Indonesia, South Korea, Japan, Taiwan,
Australia and New Zealand.