Ford and Indian automaker Mahindra have entered into an agreement to explore a strategic alliance that will focus on a number of key areas, including electrification and product development. The two companies signed a memorandum of understanding in Chennai earlier this week.

The two companies said that the partnership is designed to leverage the benefits of Ford’s global reach and expertise and Mahindra’s scale in India and successful operating model.

The collaboration is also expected to strengthen Ford’s commitment to India and improve its reach within the country, while facilitating Mahindra’s expansion into emerging global markets. Aside from electrification and product development, areas of potential cooperation include mobility programmes, connected vehicle projects and the exploration of sourcing and commercial efficiencies.

The partnership between the two companies is set to run for three years, and any further strategic cooperation will be decided at the end of that period, the automakers said.