Mahindra and SsangYong will together develop six new engines for future models from both companies.

Arun Malhotra, Mahindra chief sales officer, told Press Trust of India: "There will be joint research and development for six engines between Mahindra and SsangYong."

He also specified that the focus will be on the SUV segment as the automaker has a market share of around 40-45% in this segment. However, he declined to reveal details on where the engines would be manufactured and whether they would be petrol or diesel.

The company was considering compact SUV category products, Malhotra said, without providing any further details.