Utility vehicle manufacturers Mahindra & Mahindra have announced that they have accomplished what they have set out to do where Navistar International Corp was concerned. M&M have completed the purchase of their Navistar Group’s stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL) and now have complete ownership of operations.
Navistar had announced in December, its intention to pull out of the joint ventures. M&M stated their intention to acquire Navistar International Corp’s 49% stake in both MNAL and MNEPL for INR 175 crores. As per the terms of this new deal, Navistar will source components from India while M&M will offer engineering services to Navistar.
The Navistar Group will also support M&M where license agreements were concerned. M&M have declared a 26% increase in standalone net profit for the third quarter while sales for the three month period have also increased 29% to INR 10,643 crores. The company currently has 59 dealers in the country and close to 1000 service points.