International Truck, India's Mahindra in engines JV
MUMBAI, Nov 2 (Reuters) - International Truck and Engine Corp, a unit of Navistar International NAVZ.PK, has signed a joint venture agreement with India's Mahindra & Mahindra Ltd (MAHM.BO) to make diesel engines, the Indian firm said on Friday.
The two firms, which already have a venture to make trucks in India, will invest $90 million in the new venture, Mahindra International Engines Ltd, over the next five years, Mahindra said in a statement.
The venture, to be owned 51 percent by Mahindra, India's top utility vehicle maker, and 49 percent by the U.S. firm, will make diesel engines for medium and heavy commercial trucks and buses in India.
Components will mostly be sourced locally, reaching 85 percent within two years, Mahindra said in a statement.
"This JV will give us a strong competitive edge in the domestic market and help us leverage economies of scale," Pawan Goenka, president of Mahindra's automotive unit, said.
