Mahindra Group, a Mumbai-based manufacturer of compact electric vehicles, has announced signing an agreement with Formula E Holdings to join the series starting in China next September.
The Mahindra Racing team will thus become the eighth and the only Indian team in the championship.
"We strongly believe that Formula E can provide an excellent global showcase for our electric vehicle technology," said the group’s chairman and managing director Anand Mahindra.
"With advanced operations and expertise in electronics, IT, automotive technologies and manufacturing, we are already seeing the fusion of this technology into our electric vehicle operations," Mahindra said, stating Formula E could improve global awareness of electric vehicles and their advantages and drive further technological advances in the field.
The Mahindra Group has a previous experience in international motor racing, having been been involved in the MotoGP championship since 2011.
"We are very proud to have a major global company like Mahindra join the FIA Formula E Championship," said Formula E Holdings chief executive Alejandro Agag in a statement.
"Adding a manufacturer from India to what is already a real global mix of teams is fantastic news for the series. Everything is coming together very well and we look forward to presenting all 10 teams to the FIA World Motor Sport Council next month."
India has a Formula One team in Force India but there is no Indian driver on the F1 grid.