U.S. automaker Ford Motor and Indian automaker Mahindra & Mahindra stated on Thursday they have signed an agreement to develop midsize and compact sports utility vehicles (SUV) and an electric vehicle, which Ford could also possibly offer in other markets outside India.
The agreement follows Ford and Mahindra announced plans last September for a strategic alliance.
The companies stated they will co-develop a midsize sports utility vehicle which is going to be “sold independently by both companies as separate brands.”
The automakers will also examine co-development of a compact SUV and an electric vehicle.
Ford and other international automakers are facing pressure as policymakers demand they start concentrating more on electric vehicles over the coming years.
A Ford spokesman in India stated the automaker could sell the co-developed products in other countries around the world.
“We see the benefits of the products to be exported,” he stated. “The details will evolve on this and it is early to make a comment on this.”
Indian Prime Minister Narendra Modi’s government has stated it aims to ensure that by 2030 all new vehicles sold are electric.
The Mahindra-Ford partnership, announced in 2017, is likely to help Ford gain access to lower cost electric vehicle models and regional suppliers it needs to compete in markets such as India.
The two companies stated on Thursday they would keep working together for a period of up to three years, which will consisting of supporting Mahindra in global developing markets.