Utility vehicle major Mahindra & Mahindra on Friday signed another joint venture with Navistar International Corp, North America’s biggest commercial vehicle maker.
Former to hold 51% of JV, N American firm the rest
MUMBAI: Utility vehicle major Mahindra & Mahindra on Friday signed another joint venture with Navistar International Corp, North America’s biggest commercial vehicle maker, to produce diesel engines for medium and heavy commercial vehicles (M&HCV) in India.
To be called Mahindra International Engines (MIEL), the JV would be 51% held by Mahindra and 49% by Navistar.
The combined investment of the two companies will be $90 million over the next five years. Navistar is also the world’s largest manufacturer of medium duty diesel engines.
M&M and another Navistar affiliate, International Truck and Engine Corp, are already in another 51:49 tango — Mahindra International — to make trucks and buses in the country.
The $80 million project involves an upcoming greenfield facility in Pune.
MIEL will set up a greenfield unit which will manufacture diesel engines for the full line of trucks and buses produced by the preceding JV beginning April 2009.
Initial capacity would be 25,000 units per year, reaching 40,000 per year in five years.
The localisation level of the engines manufactured is expected to be high.
Pawan Goenka, president, Automotive Sector, M&M, said: “M&M’s sourcing expertise will help the JV source up to 85% of engine components locally, due to availability of quality parts and materials from Indian suppliers.”
MIEL will also provide sourcing services and engineering services to International Truck and Engine Corp, which has operations in North and South America.
It is not clear why light commercial vehicle (LCV) engine is not part of the joint venture. M&M has already transferred its light commercial vehicle business to the commercial vehicle JV, Mahindra International.
On its own, M&M is working on a ground-up project to manufacture a light transport and goods carrier which would rival Tata Motors’ runaway success Ace.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}