The latest step towards the large-scale transition to electric vehicles was signaled this week.
Car giants Ford and the Mahindra Group have agreed to work together on developing a new EV for the huge Indian market, but potentially for sale elsewhere.
The two companies signed five separate, non-binding memoranda of understanding (MoU) which will develop their strategic alliance and the co-development of new products, including a small electric vehicle.
“Today’s announcement is the next step in the collaboration between Mahindra and Ford,” said Dr Pawan Goenka, Managing Director, Mahindra and Mahindra Ltd. “Both teams are working together on joint development areas in keeping with industry requirements and leveraging mutual strengths”
The partnership also extends to developing a new sports utility vehicle (SUV) and connected car solutions.
Jim Farley, Ford’s executive vice president said that electrification was one of the “key focus areas” for the car giant.
“Ford is committed to offering the best vehicles, technologies and services that fit the lifestyles and preferences of Indian consumers”, he said.
“Listening to our customers and incorporating their future needs is the core premise of this collaboration”.
Automobile companies are facing increasing pressure to move away from polluting forms of transport to combat climate change and air pollution.
It is hoped that with the support of Ford and Mahindra, as major manufacturers in a huge emerging market, such as India, could accelerate the technology even further.
Car companies have been quick to announce their intentions to convert to electric vehicles in the face of policy pressure, decreasing sales of diesel and cost reductions in battery technology.
Earlier this month, the Renault-Nissan-Mitsubishi Alliance announced plans to upgrade its cars to new battery technology by 2025. It faces tough competition from Toyota and BMW in the new market.