Navistar International Corp's operating company, International Truck and Engine Corp, has finalized a joint venture with Mahindra & Mahindra of India to produce and market light, medium, and heavy commercial vehicles for India and export markets.

The joint venture, named Mahindra International, has 51% ownership by Mahindra and 49% ownership by International. The combined investment of the two companies will be more than $80 million over the next two to three years. Initial plans for the joint venture were announced in June.

As part of the joint venture, a development center has been opened in India. It currently employs fewer than 100 engineers and is anticipated to grow to 300 engineers. Engineering has begun on vehicles to be introduced in the Indian market in 2007.

Mahindra International is expected to produce commercial trucks and buses starting in 2007 in an updated Mahindra facility. This factory will include cab assembly, vehicle assembly, and a paint shop. The vehicles will have 90% local content from the start due to availability of quality parts and materials from Indian suppliers.