Ford Motors has put all projects with Mahindra & Mahindra on hold while it finalizes a new India strategy, three people familiar with Ford’s plan told Reuters. The $275 million deal, which would have ended most of Ford’s independent operations in India, was called off on December 31.

“The options could include working out a new relationship with Mahindra or ending the relationship and related vehicles completely,” one of the sources said, while two other sources said they expect Ford to make a decision in about a month on whether to proceed with Mahindra in a different form or not. They added that Ford Chief Executive Jim Farley wants to see a path to greater profitability in India.

The two companies had proposed a joint venture to develop at least three SUVs for India and emerging markets, as well as share suppliers, powertrains and technology.

Since Jim took over the charge of CEO in October, Ford has pushed harder to remake itself globally as part of an $11 billion restructuring, including ending manufacturing in Brazil, and speeding up the rollout of electric vehicles. The first source said that with so much of Jim’s plate and limited financial resources, India is a lower priority.

Despite entering India market 25 years ago, Ford just has three percent share. The market is mostly dominated by Suzuki Motor Corp’s and Hyundai Motor’s extensive line-up of mainly low-cost cars.

However, despite putting the partnership into cold store, company officials and analysts previously were optimistic that the tie-up with Mahindra would have given Ford a better chance against rivals by allowing it to launch new vehicles faster, at reduced costs and with lower investment.

Ford said that its independent Indian operations will continue.

“We are reviewing our businesses strategy, making choices and allocating capital consistent with the plan to achieve an 8% company adjusted EBIT margin and generate consistently strong cash flow,” spokesman Kapil Sharma said. “We will have more details to share at a later date.”

This opportunity was a golden path for Mahindra to enter new global markets, but it walked away from the deal over concerns its RoI would be too low.

Mahindra said in a statement that the automakers are looking at ways to collaborate. “We have defined a timeline till the end of March for this work to be completed,” the company said.

Ford is currently weighing all programs it had planned for the JV with Mahindra. It will review which ones it plans to keep from a profit standpoint, the second source said.

Ford is also negotiating new terms, including costs, for an engine Mahindra was to supply for its EcoSport SUV later this year, one of the people said.

Ford’s two SUV that it is building for launch in 2023 and 2024, the plan had been to use Mahindra engines. But if it walks ways from the deal, Ford will have to find another supplier or invest in upgrading its own engines, two sources said.

One of the sources said that it will come down to a cost versus profit analysis and that hinges on discussions with Mahindra.

Even as Ford thinks to bring global products to India, it will need to look at several factors including competition, new fuel efficiency rules and its ability to make money in a price-sensitive market to ensure success.

The two sources said that India’s competitiveness as an export base for affordable cars will also play a role.

“If Ford decides to invest more in India it needs to know by when it can recover that investment,” one source said.