Mahindra & Mahindra (M&M) has formed a joint venture with US-based Navistar International Corporation to produce diesel engines for medium and heavy commercial trucks and buses in India. The combined investment in the joint venture is pegged at $90 million, which will be spread over the next five years.The joint venture will be named Mahindra International Engines (MIEL). M&M will hold 51% stake and Navistar will hold the balance 49%, according to a release issued by M& M to the BSE today.This is Navistar's second JV with M&M. The first JV was formed in 2005 to make light, medium and heavy commercial vehicles for India and the export markets. The new company's advanced diesel engines will power the full line of trucks and buses produced by the preceding JV beginning 2009. Engine components will be sourced locally, going up to 85% within two years, due to the strong availability of quality parts and materials from Indian suppliers."The JV will not only extend our existing partnership with Navistar but the resulting synergies will also see MIEL emerge as a force to reckon with in the global OEM market.", said Anand Mahindra, VC & MD, Mahindra Group.
