Navistar International Corporation is netting a reported $33 million in the sale of two joint-venture stakes to its partner, Mahindra & Mahindra Ltd. The two have been partners in operating Mahindra Navistar Automotives Ltd (MNAL) since 2005, and Mahindra Navistar Engines Pvt. Ltd. (MNEPL) since 2007.

The MNAL venture manufacture trucks and buses in India, and sources components and conducts design-engineering services for Navistar vehicles.

MNEPL produces commercial vehicle engines.

In December 2012, Illinois-based Navistar announced the plan to sell its shares in the two companies, leaving Mahindra as the sole owner. At that time, Navistar said the decision to sell followed an analysis of its businesses according to the return on invested capital (ROIC) and potential for improvement.

"While the Indian market has not expanded as we had originally expected and industry challenges there continue in the near term, we still see promise in India going forward,” Navistar president and CEO Troy Clarke stated in December. “But, given Navistar's 2013 priorities, our capital and focus needs to be allocated to other business opportunities in the near term.”

Navistar is retaining the option to continue sourcing components from India, and Mahindra will continue providing engineering services to Navistar. Also, Navistar will continue to support M&M via a license agreement, and support MNAL and MNEPL to maintain business continuity.

“Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra’s Truck and Engine businesses continuing to play a critical role in helping us achieve this goal,” stated Dr. Pawan Goenka, president of the group’s Automotive and Farm Equipment Sectors.

Mahindra & Mahindra is an industrial conglomerate that manufactures agricultural equipment and commercial vehicles, but also has stakes in IT and real estate. It is India’s largest automaker, and it has wide range other investments in manufacturing, high-tech, defense, and financial industries.