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Mahindra, Ford agree to jointly develop SUVs, electric vehicle

Mahindra Group and Ford Motor Co. signed five nonbinding memorandums of understanding to boost their strategic alliance and accelerate product development in India and emerging markets.

The companies have agreed to jointly develop new SUVs as well as a small electric vehicle, among other initiatives.

Mahindra and Ford will co-develop a midsize SUV built on the former's platform. It will be sold independently under separate brands by the two companies. Ford and Mahindra will also co-develop an electric vehicle and a compact SUV.

Mahindra will also supply powertrains to boost Ford's product range, and the partners will develop connected car solutions for consumers.

Jim Farley, Ford's executive vice president and president of global markets, said his company is looking to offer the best vehicles in the Indian market that meet the preferences of local consumers.

Mahindra & Mahindra Ltd. Managing Director Pawan Goenka said he hoped that by working together, the two companies can leverage each other's strengths.