Volkswagen and Fiat look at Navistar for viable commercial vehicle space in US auto market: What will Mahindra do

Navistar International Trucks and Engine Corporation have been instrumental in the manufacture of medium and heavy trucks and diesel engines ever since it was founded in 1902. The company entered into a JV with Mahindra International in 2010 to launch their products in the Asian markets, however success was not guaranteed.

The company recently announced a $172 million first quarter loss while at the same time their 5000th truck was produced at their plant in Maharashtra. Further the company not bogged down by their $172 million first quarter loss is also keen to introduce six new vehicles in the coming 18 months.

Volkswagen has two commercial truck lines to their name namely Scania and MAN and now wants to add Navistar to their line for introduction into the US commercial vehicle market. Side by side, Fiat too has show keen interest in Navistar which along with their very own Iveco will improve their position in US markets. Both these possibilities will not work in Mahindra International’s favor. It would scuttle company’s long term plans for the heavy commercial markets as they plan new products and expansion of their own facilities to increase their market share. Change in ownership isn’t something that M&M will take lightly, especially since added investment plans, exports, and added vehicle lines are in the offing.