Mahindra Group and Ford Motor Company have entered into a definitive agreement to co-develop a midsize sports utility vehicle (SUV).
According to a joint statement issued on Thursday, under the new agreement, Mahindra and Ford will work together to introduce a benchmark product for India and emerging markets.
"The new agreement reinforces the steady progress made since the announcement of the strategic alliance between the two companies in September 2017, followed by an announcement on powertrain sharing and connected car solutions in October 2018," the statement said.
"The new midsize sports utility vehicle (C-SUV) will have a common Mahindra product platform and powertrain, thus driving engineering and commercial efficiencies."
As per the statement, the plan to co-develop a midsize SUV will reduce product development costs and gain economies of scale for both companies.
"The strategic alliance between the two companies is focused on leveraging the benefits of both companies -- Ford's global reach and expertise and Mahindra's scale and successful operating model in India," the statement said.
"Teams from both companies continue to collaborate on all areas of mutual interest including electrification, distribution and product development."
Earlier this fiscal year, the alliance signed an agreement with Mahindra Group to develop and supply a low-displacement petrol engine for use in Ford's present and future vehicles, beginning in 2020.