The Hindu Business Line : International Truck plans engine plant in India

International Truck and Engine Corporation (ITEC) of the US plans to set up an engine plant in India. The plant would manufacture engines for commercial vehicles in the range of 100-250 HP (horsepower) for domestic and export markets. It is, however, not clear where would the plant be set up.

It may also become the global hub for outsourcing of these engines in markets such as Latin America, West Asia and Asia Pacific, Mr John P. Lamoureux, Vice-President, truck strategy and business operations, ITEC, said. The engine range has been selected based on the current engine range present in the domestic market as well as the specific export markets, he told Business Line. ITEC is considered the world leader in diesel engines in the 160-325 HP range, with production of over 4,00,000 engines per year.

New Plant

Besides outsourcing of engines, the US commercial vehicle player has plans to make left-hand drive commercial vehicles for the export markets. These vehicles would be built at the upcoming medium and heavy commercial vehicle plant being set up by the joint venture (Mahindra & Mahindra and ITEC) said Mr Lamoureux. It is exciting times for ITEC as it has been 15 years ever since the commercial vehicle set up a new plant; the upcoming one would be ITEC's best plant with modern technology, he said.

The joint venture (signed in 2005) had plans to outsource components and engineering services worth $100 million by 2007. Till date, it has outsourced components worth $3 million. Senior officials said that it would touch $45 million this year and may touch $100 million by 2008.

Mahindra Engineering Services, the engineering services arm of M&M, has begun the supply of engineering services to ITEC's Truck Development & Technology Centre with a dedicated taskforce of 250-300.

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