MUMBAI: In a radical step, Mahindra and Ola are now all set to revolutionize both the automobile industry and the online car booking sector in India. In a news conference held in Mumbai today, Mahindra group Chairman Anand Mahindra said that the  automakers will need to adapt and design cars differently in the future by building cars better suited to the needs of the sharing economy, so as to capitalize on the rapid rise in ride-sharing popularity both domestically and overseas.

"This is going to completely change the auto industry," Mahindra said in an interview, just ahead of announcing the alliance with Ola that is expected to rake in $400 million in revenue over the next two years via car and service sales.

With this step, Mahindra now joins the leagues of Toyota Motor Corp, Volkswagen, and General Motors, which already have all officials tie-ups with ride-sharing and commute companies. This step not only ensures free publicity for Mahindra but also ensures that the buyer interest sticks with the brand. Making it a win-win situation, this deal will also benefit Ola as now the company will have a one-stop destination for all its driver and automobile needs.

However, the contract is not an exclusive one and Mahindra is open to deal with other companies as well.