Truck Manufacturers | Bus Manufacturers

Mahindra Navistar Automotives Ltd is a 51:49 Joint Venture between Mahindra & Mahindra Ltd. (M&M) and Navistar Inc. USA.

Mahindra Navistar will manufacture the entire spectrum of commercial vehicles ranging from 3.5 – 49 tons GVW/GCW. These products are developed to suit Indian conditions and will set new levels of reliability, efficiency and customer experience unseen & unheard of in the commercial vehicle industry. Huge investments are being made in product development and in setting up of a Greenfield manufacturing facility at Chakan near Pune.

ABOUT NAVISTAR INC.

Navistar’s roots go back to 1831, with the invention of the reaper, an implement that cleared the way for agricultural development across the North American continent. In 1902, the company teamed with several other makers of agricultural implements to form International Harvester, which became one of the largest companies in the world. The company produced its first trucks in 1907, and began manufacturing diesel engines in 1933. In 1963, International Harvester formed a joint venture with Mahindra & Mahindra, Ltd. for the manufacturing of tractors for the Indian market. In 1986, International Harvester sold its agricultural business and, under the new name Navistar International Corporation, refocused its business model to concentrate on trucks, buses and engines.

Today, Navistar is North America’s largest combined commercial truck, school bus and mid-range diesel engine producer distributing products via a dealer network of more than 1000 dealers in over 90 countries. It has established a threefold strategy for continued success – great products, a competitive cost structure and profitable growth – and has achieved its objectives in all three areas. In 2004, Navistar established growth goals of nearly doubling its size to $15 billion by 2009, with 10 percent manufacturing profit in each segment, and is on track to reach both goals.

A key element of Navistar’s success is its leadership in developing innovative, aerodynamic and environmentally responsible products:

•	Its International® ProStar® vehicle is the most fuel-efficient long-haul truck in the industry, using 7 percent less fuel than its closet competitor.
•	The boldly styled International® LoneStar® created an entirely new category of Advanced Classic trucks to meet the requirements of the independent trucker, while also delivering 18 percent less wind resistance than its premium truck competition.
•	The company’s new MaxxForce™ engines, which employ a compacted-graphite iron cylinder block like those used in professional racing vehicles, have a 400-pound weight advantage over competitive engines, providing increased payload and improved fuel-efficiency.
•	Navistar also was the first company in North America to introduce energy-saving hybrid vehicles in both the commercial truck and school bus segments. For example, the plug-in hybrid and conventional diesel-hybrid school buses produced by Navistar affiliate IC Bus improve fuel efficiency by more than 70 percent and reduce emissions of carbon dioxide (CO2) by 90 percent.

As part of its growth strategy, Navistar made the decision to enter India and the broader regional export market for trucks and engines. “We were strongly impressed with the enormous economic potential of India, and its proximity to other key markets in Asia, South Africa, the Middle East and Australia,” states Deepak T. (Dee) Kapur, president of the Navistar Truck Group. “We made the determination that, with the right joint venture partner, the entire region offered tremendous growth potential for both commercial vehicles and diesel power trains.”

Apart from joint venture to manufacture trucks and buses, in November 2007, Navistar signed a second joint venture agreement with Mahindra & Mahindra, Ltd., this one focused on producing diesel engines for M&HCV in India. The joint venture, named Mahindra Navistar Engines Ltd. (MNEL), is also 51 percent owned by Mahindra and 49 percent owned by Navistar.

Beginning in 2009, MNEL’s advanced diesel engines will power the full line of trucks and buses produced by MNAL. Engine components will largely be sourced locally.

The engines will be produced at the same Chakan facility as MNAL’s truck production, which will be operated in an integrated manner to facilitate production efficiencies and other synergies. Production of the new engines is targeted for April 2009. The first production engine will be a 7.2-liter, in-line design that has already proven to be very successful in commercial truck and bus applications in both South America and Mexico.

Ultimately, the Mahindra Navistar joint ventures will deliver a full lineup of engines and trucks to the Indian marketplace, while also exporting from India to other parts of the world. Given the promising market climate and the strong technology and product development credentials of both partners, both are confident that the ventures will enable them to expand their global presence while achieving business success.