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Indian automaker Mahindra Group and Ford Motor Company (F) on Monday agreed to explore a strategic collaboration which would leverage Ford's global scope and expertise and Mahindra's scale in India and efficient operating model.

Shares of Ford were climbing higher following the announcement, up 0.34% to $11.66 midday Monday.

The proposed agreement would allow each company to take advantage of each's respective strengths, as the automotive industry undergoes a technological transformation.

The areas the collaboration would include mobility programs, connected vehicle projects, electrification, product development, sourcing and commercial efficiencies, distribution within India and other global emerging markets, Ford said.

"Ford is committed to India and this alliance can help us deliver the best vehicles and services to customers while profitably growing in the world's fifth largest vehicle market," said Jim Farley, Ford executive VP and president of Global Markets. "The memorandum of understanding we have signed today with Mahindra will allow us to work together to take advantage of the changes coming in the auto industry." 

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