New Delhi — US car maker Ford Motor and India’s Mahindra & Mahindra have signed an agreement to develop mid-size and compact SUVs and an electric vehicle (EV), the companies said in a joint statement on Thursday. The agreement comes after Ford and Mahindra, one of India’s oldest vehicle manufacturers, announced plans last September for a strategic alliance. The companies said they will co-develop a mid-size SUV, which will be "sold independently by both companies as separate brands". Ford and other global vehicle makers are facing pressure as policy makers demand they start focusing more on EVs over the coming years. Indian Prime Minister Narendra Modi’s government has said it wants to ensure that by 2030 all new vehicles sold are electric. The Mahindra-Ford partnership, announced last year, is likely to help Ford get access to lower-cost EV designs and the local suppliers it needs to compete in markets such as India. The two companies said on Thursday that they would continue to wo...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00.