Mahindra & Mahindra (M&M), the $2.59 billion Indian automotive conglomerate, has signed a 51:49 joint venture with International Truck & Engine Corporation, USA, to manufacture trucks and buses in India. International Truck is the North American leader in medium and heavy trucks and buses and the world’s largest manufacturer of medium duty diesel engines.
On the JV, Anand Mahindra, Vice Chairman and MD, M&M, said, “This JV will help us strengthen our competencies across our core areas of product development, engineering and manufacturing. While enabling the widening of our participation in the auto sector in India, our relationship with International Truck will also support our aspirations to be a global player.”
Deepak Kapur, President, Truck Group, International Truck and Engine Corporations, added, “This is a renewal of our previous association with M&M, which led to the enormously successful introduction of International and Mahindra in the Indian tractor market in the ’60s. Our association in its current form will cause International Truck to use India as a significant supply base for sourcing components and materials. In addition, the joint venture, along with the Mahindra group companies, will provide engineering services to International and the venture for the design and development of truck and bus products.”
The project investment would be $80 million. M&M has recently transferred its light commercial vehicle business to Mahindra International. This will enable the company to start production from its inception pending the launch of the new range of medium and heavy commercial vehicles in 2007.
The company aims to be in every segment of the commercial vehicle market from 6 tonne GVW to 35 tonne GVW with variants of passenger transport, cargo and specialised load applications.
“The JV adds ballast to our expansion plans. The process of combining our core strengths has already begun. We have recently shifted our LCV operations to Mahindra International. Vehicles manufactured by the JV will be exported to markets where International Truck or M&M have their presence with the JV building its own distribution in new markets,” said Dr Pawan Goenka, President of M&M’s Automotive Sector.