Mahindra Navistar to sell engines to third parties, too

Mahindra Navistar Automotive (MNAL), the joint venture between Mahindra & Mahindra and US’ Navistar International Corp, is not just serious about selling trucks and buses in the Indian market and commanding a No. I spot. The company is also serious about selling engines to third parties by the end of next year.

Daniel Ustian, chairman, president and chief executive officer, Navistar International Corp, said the initial focus is on the launch of medium and heavy commercial vehicles and then the venture will look at the third-party opportunity for selling engines.

“We could bring in more of our engines for production to India”.At the Chakan plant, MNAL has an engine manufacturing facility where the Maxforce 7.2 litre engine is produced on a flexible line — it can also manufacture similar engines.

The other engine line is for M&M’s Maxximo.

The localisation for the MNAL-manufactured engine is 71% and in two years, it will touch 95%, said Pawan Goenka, president (automotive), M&M.

Navistar International Corp, which is the largest truck maker in North America and globally has a 33% market share, is also a leading engine manufacturer, selling 3,75,000 engines per year in North America.