Mahindra & Mahindra Ltd.

Mahindra & Mahindra (M&M), India’s leading SUV manufacturer, has completed its purchase of the Navistar Group’s stake in Mahindra Navistar Automotives (MNAL) and Mahindra Navistar Engines (MNEPL). The deal has received regulatory approval in India and M&M has now taken complete ownership of operations and continue to sell MNAL and MNEPL products.

In December 2012, Navistar had decided to exit the joint venture as part of its ‘Drive to Deliver’ turnaround strategy, which is focused on strengthening its North American core businesses and pursuing near-term initiatives to improve the company’s return on invested capital (ROIC) performance.

The agreement however, allows Navistar to continue sourcing components from India while Mahindra would continue to provide engineering services to Navistar. The Navistar Group will continue to support M&M through license agreements and extend necessary support to MNAL and MNEPL for the purposes of business continuity.