Engines in India

A joint venture between Navistar International and Mahindra & Mahindra is to produce diesel engines for medium and heavy commercial trucks and buses.


A joint venture between Navistar International and Mahindra & Mahindra is to produce diesel engines for medium and heavy commercial trucks and buses in India.


Mahindra International Engines Ltd (MIEL), as the joint venture is called, will be 51 percent owned by Mahindra & Mahindra (M&M) and 49 percent owned by Navistar, North America’s largest combined commercial truck, school bus and mid-range diesel engine producer.


With a combined investment of $90m from the two companies over the next five years, MIEL will build a new manufacturing facility which will start producing engines in April 2009. The first production engine will be a 7.2-litre, in-line design that has been very successful in commercial truck and bus applications in South America, and Mexico.


Initial capacity of the new plant is exptected to be 25,000 units per year, ramping up to 40,000 per year within five years.


The MIEL joint venture company will also provide sourcing services and engineering services to another Navistar affiliate, International Truck and Engine Corporation, which has operations in North and South America.