The Blue Oval will reportedly test selling cars directly to Chinese customers through Alibaba’s online retail arm Tmall as well as a brick-and-mortar “Automotive Vending Machine” store concept. This would mark Ford’s first major foray into direct sales, a system that is currently used by Tesla and is gaining attention from other automakers.

Representatives of Ford and Alibaba, including Ford chairman Bill Ford Jr. and CEO Jim Hackett, are expected to sign a letter of intent in Hangzhou on Thursday outlining these programs, according to Reuters. Ford confirmed that it will make an announcement in Hangzhou Thursday, but did not provide details. The partnership could mark an escalation in Ford’s efforts to increase sales in China. The company recently announced a deal with local firm Zotye Auto to build electric cars there.

While cars could be sold online, customers may take delivery at conventional Ford dealerships, who would also handle maintenance, the report said. But Alibaba’s Tmall is also testing something called the “Automotive Vending Machine,” a retail store based around a multi-story garage that would actually resemble a giant vending machine. Customers would browse available cars supplied directly by Ford on their phones to buy or test drive. Alibaba envisions customers putting 10 percent of the purchase price down, and paying the balance in monthly installments through its Alipay service.

Both models could bypass traditional franchised dealerships, something Tesla is already doing. The Silicon Valley automaker has sold cars directly to customers from the start, angering franchised dealers who view direct sales as a threat to their business. In the U.S., Tesla has fought a state-by-state battle against dealer-franchise laws, which still bar it from selling cars directly to customers in some states.

A major legacy automaker like Ford embracing the concept could be a big boost for direct sales. But it’s unclear if Ford would actually import direct sales to the U.S., and risk alienating its network of dealers. Anyone who has bought a car knows that current franchised dealerships are far from perfect, but the system is well entrenched

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The event shows Ford’s commitment to both the electric vehicles and Chinese market. In a press release, the Blue Oval said it anticipates the market for  “new energy vehicles” in China will reach 6 million units annually by 2025, including 4 million all-electric cars.

The Chinese government began motivating new energy vehicles several years ago to resist horrible air pollution, but sales have only really picked up over the past decades. A large mount of those sales have been plug-in hybrids that, due to China’s limited charging infrastructure, may not get plugged in very often, or small electric vehicles with limited range.

Ford already had plans to expand sales of electric cars, but the joint venture with Zotye Auto shows a stronger commitment to those plans. In April, Ford said it that by 2025 it would supply hybrid or all-electric versions of every model built in China. But it also said it would take a cautious approach, due to uncertain consumer demand and probable changes in government policy.

Meanwhile, Ford is going to launch an electric SUV with a 300-mile range in America, and a gaggle of new hybrids too. The automaker also has cooperation with DHL in Germany on electric delivery vans. It’s a major change for a company that hasn’t paid much attention in all-electric cars before, until recently. Ford’s only current all-electric car is the unloved Focus Electric, which only has a slow sale.

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