M&M signs JV with US truckmaker Navistar

Our Corporate Bureau
13 December 2005

Mumbai: Sports utility and tractor maker Mahindra and Mahindra has entered into a joint venture with the third largest truck manufacturer in the US Navistar International. The joint venture company, to be known as Mahindra International, will manufacture and market light, medium and heavy commercial vehicles for Indian and export markets.

Mahindra and Mahindra will have a majority 51-per cent holding in the joint The combined investments of the two companies is expected to be over $80 million over a two-to-three year period, according to a statement from the two companies.

Anand G Mahindra, vice-chairman and managing director of Mahindra and Mahindra, said, "This JV will help us strengthen our competencies across our core areas of product development, engineering and manufacturing."

"The joint venture will enable us to widen our participation in the auto sector in India, and our relationship with Navistar will also support our aspirations to be a global player," Mahindra added.

Daniel C Ustian, Navistar chairman, CEO and president, said the joint venture gives the company "The opportunity to participate in the economic growth of India and the surrounding region, working with a partner of proven capabilities and reputation." He further added, "This approach provides both inherent cost savings and the advantages of scale."

Mahindra International is expected to start production of commercial trucks and buses in 2007 in a new state of the art facility, which includes cab assembly, vehicle assembly and a paint shop. The vehicles that roll out of the facility will have 90 per cent local content due to the strong availability of quality parts and materials from Indian suppliers, the statement said.