Mahindra and Mahindra (M&M), one of India`s leading automaker, announced it has entered into a joint venture (JV) agreement with it`s existing partner, TMI Pacific, a local Australian importer and distributor of vehicles. This agreement will lead to the formation of a new company called Mahindra Automotive Australia whih will continue the marketing, promotion and retail of mahindra vehicles in Australia. Mahindra will be the major shareholder with 80% stake in the new joint venture while the rest would be held by TMI Pacific.

Chairman of  TMI Pacific Michael Tynan said, ``Over the past 18 months TMI pacific has successfully laid the foundation and carved a niche in the Australian landscape for the Mahindra range of Utility vehicles. Working alongside Mahindra we have built brand presence and believe that the stake that Mahindra is putting in Australian soil and the commitment they are showing to becoming even more strongly involved in our market is a treatment to their belief in it. This affirmative action will provide even further confidence to the dealer network and to prospective customers. We welcome this positive move forward.``

Pawn Goenka, president, automotive sector, Mahindra & Mahindra said, ``We are delighted to extend our relationship with TMI Pacific, which has contributed in large measure to the success of the Mahindra brand in Australia as we merge to form a new entity, our collective dedication will ensure that the Mahindra brand will become further ingrained in the Australian market. We have a strong for international growth and this move is integral part of the plan.``     

Shares of the company gained Rs 3.65, or 0.97%, to settle at Rs 379. The total volume of shares traded was 73,208 at the BSE (Thursday).