Mumbai Nov 2 (UNI) Indian commercial vehicles major Mahindra and Mahindra has entered into a joint venture agreement with US-based Navistar International Corp for manufacturing diesel engines in India.
Navistar's subsidiary International Truck and Engine Corporation in association with M&M will invest USD 90 billion in next five years to manufacture diesel engines for medium and heavy commercial trucks and buses in India, M&M said in a statement here today.
The joint venture will be named as Mahindra International Engines Ltd (MIEL), in which 51 per cent stake will be held by the Mahindras and 49 per cent by Navistar, the company added.
''Our plant in India will produce world-class engine models for both the Indian and global export markets,'' Mahindra Group Managing Director Anand Mahindra said in the statement.
''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,'' Mr Mahindra added.
It was the second JV agreement signed between M&M and the Navistar affiliate, one was signed in 2005.