PSA Group and FCA are reportedly in talks of a possible partnership involving shared investments on electric cars, people familiar with the talks said.

Reports suggest that ahead of this, the two companies have been holding preliminary discussions to collaborate on a “super-platform” in order to cut down their investment costs in the highly competitive region.

Last month, the companies extended their cooperation on light-duty vans to include vehicles under PSA’s Opel and Vauxhall brands.

Earlier this month, PSA CEO Carlos Tavares said that the company was ready to seize opportunities of growth, less than a year after integrating Open and Vauxhall brands that it bought from GM. Meanwhile, Mike Manley stated that he would “clearly look into” the deal that would make the Italian-American carmaker stronger.

Considering that the sales of electric vehicles are expected to globally boom to 60 million a year in 2040 from 2.2 million this year, any eventual partnership is highly possible to be made for new electric cars.

“No single car manufacturer alone can afford the sheer size of investments needed to develop platforms for the kind of smart, hybrid and connected vehicles that will hit the road in coming years,” said Carlo Alberto Carnevale Maffe, a professor at Bocconi University in Milan.

"Talks between PSA and FCA, as well as the one by BMW and Daimler, are a clear sign that the industry needs to find a new equilibrium of competition on final products and services, leveraging on inevitable cooperation in technology development and supporting infrastructures."

Last month, the companies extended their cooperation on light-duty vans to include vehicles under PSA’s Opel and Vauxhall brands. In the past few months, major automakers have been partnering with each other to increase efforts and speed up its development in electric as well as autonomous driving tech.

In addition to this, stringent emission norms that have been put into force by European regulators are also forcing the industry to shift away from internal combustion engines.