NEW DELHI—As competition intensifies in India’s hotly contested ride-hailing sector, one of its biggest car makers, Mahindra & Mahindra Ltd., is teaming up with ride-hailing service Ola to fend off Uber Technologies Inc.

Under the agreement disclosed on Thursday, Mahindra will offer Ola drivers discounts on cars as well as financing, insurance and maintenance services. The auto maker says the partnership could generate more than $400 million in business for itself as the attractive terms draw in a dedicated customer base.

The tie-up comes as Ola, which is owned by ANI Technologies Pvt., faces increasingly intense competition from Uber in India’s growing market for ride-hailing services. Uber has identified India as its next battleground after its costly battle for riders in China ended with it selling its operation there to Didi Chuxing Technology Co. Full Story

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