The joint venture is formed after Cummins purchased Navistar's 50 percent equity of the JAC-Navistar Diesel Engine Company, the Inside Indiana Business website reported.
"Cummins and JAC share similar values. ... By strengthening our relationship, we can focus on becoming more competitive in our markets by developing and offering high-quality, clean and fuel-efficient products," Steve Chapman, Cummins Group Vice President for China and Russia, said in the press release.
The new joint venture will continue its operations at the manufacturing facility in Hefei, capital of east China's Anhui Province.
Cummins currently supplies light-duty, mid-range and heavy-duty engines to JAC Motors for its domestic market in China as well as its global operations.
"By integrating our equipment expertise with Cummins' world-class technological and power train capabilities, we are confident we have the right formula in place for tremendous success," said Xiang Xingchu, general manager of JAC Motors.
Chinese market contributed 5.56 billion U.S. dollars in sales for Cummins in 2017, growing 38 percent from the previous year. It is one of the largest and fastest growing overseas market for Cummins.
The company also maintains cooperation with a number of other Chinese manufacturers, including those based in the country's central and western parts.