The joint venture will produce medium & heavy commercial vehicles that would be designed and developed using in-house capabilities.
The JV is expected to invest close to Rs 2,500 crore (Rs 25 billion) in the project, and production is expected to commence in two years.
Anand Mahindra, vice chairman and managing director, M&M, said, "M&M's state-of-the-art facility, which would be located in Maharashtra, is of strategic value to our plans to expand our product spectrum to commercial vehicles and feed our aspirations to be a global player. The IETC JV is a significant step in our evolution as an integerated player in the global automotive market."