The JV, Mahindra International, will initially invest $80 million in India.
Anand Mahindra, vice chairman and managing director, M&M will be the chairman of Mahindra International, according to an agreement signed by the two companies.
The JV company would provide sourcing and engineering services to ITEC's North American operations besides using M&M's existing distribution network in India.
It has already commenced manufacturing light commercial vehicles under a contract manufacturing arrangement with M&M at the Zaheerabad plant.
ITEC Truck group president Deepak Kapur said, "This association will cause ITEC to use India as a significant supply base for sourcing components and materials."
The JV, along with Mahindra group companies would provide engineering services to international and the venture for the design and development of truck and bus products, he added.