International Finalizes Venture to Build Trucks in India

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nternational Truck and Engine Corp. said Monday it has finalized a joint venture with an Indian manufacturer to produce and market light, medium and heavy commercial vehicles for India and export markets.

The joint venture, to be named Mahindra International, has 51% ownership by the Indian firm Mahindra & Mahindra, and 49% ownership by International.

Combined investment of the two companies will be more than $80 million over the next two to three years, the companies said. Initial plans for the joint venture were announced in June. (Click here for previous coverage.)

Navistar Chairman and Chief Executive Officer Daniel Ustian said the joint venture gives the company “the opportunity to participate in the economic growth of India and the surrounding region, working with a partner of proven capabilities and reputation.”

"Equally important to our growth strategy is the opportunity to utilize India as a significant supply base for global sourcing of components and materials." he said in a statement.

s part of the joint venture, the two companies have opened a development center in India, which now employs fewer than 100 engineers but is expected to grow to 300 engineers. Engineering has begun on vehicles to be introduced in the Indian market in 2007.