The agreement will lead to the formation of a new company called Mahindra Automotive Australia which will continue the marketing, promotion and retail of Mahindra vehicles in Australia.

Mahindra will be the major shareholder with 80pc stake in the new company.

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 testament to their belief in it,” chairman of TMI Pacific and the Tynan Motor Group of companies, Michael Tynan said.

Meanwhile, Dr. Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra Ltd. Said: "We have a strong vision for international growth and this move is an integral part of that plan.

“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.

Further plans for the new company, along with future models for the Australian market will be announced in an upcoming event for stakeholders, early next year.

Mahindra continues to grow strongly, and during the second quarter ending September 30, gross revenues of the company grew by 14pc, while net profit after tax excluding exchange loss and other exceptional and special items grew by 9.3pc.

The $US 6.7 billion Mahindra Group is among the top 10 industrial houses in India, being the market leader in multi-utility vehicles.

Mahindra & Mahindra is the only Indian company among the top tractor brands in the world.