Mahindra Racing will team up with Suter Racing Technology for the design of its 2013 Moto3 machine.

The first-ever Indian manufacturer to compete in a two-wheeled World Championship will collaborate closely with former grand prix rider Eskil Suter's company to produce an all-new Mahindra bike.

Mahindra made its grand prix debut in the 125cc two-stroke class in 2010, but this year's switch to the 250cc four-stroke Moto3 class has seen the team struggle badly with engine performance.

"We have said this before and we reiterate that Mahindra is committed to succeeding in MotoGP. We conducted a 360 degree review of the Mahindra Racing operations to evaluate and conclude on strategic initiatives needed for future," explained Mr S.P. Shukla, Mahindra's President of Group Strategy and Member of the Group Executive Board.

"We have been impressed by Suter Racing Technology - its track record, facilities and expertise and its Moto3 bike design. We were also impressed that Suter shares many of Mahindra's attributes and values and is excited about this partnership."

Whilst the majority of the field use engines from Honda and KTM, the Mahindra is powered by an Oral-designed engine.

That responsibility will now pass to Suter, which presently supplies chassis designs for Moto3, Moto2 and MotoGP - but will now work closely with Mahindra (an important manufacturer in its domestic market) to develop both a new chassis and engine for next season.

"It is very motivating for us to be working with Mahindra Racing," said Eskil Suter. "With such an important global group behind the team it has huge potential and when you see a Moto3 team with over 340,000 fans on Facebook, more than any MotoGP team, you know this is serious.

"Mahindra's presence in MotoGP is important for the future of the sport and I am proud that our company has been chosen to help them achieve their goals."

Mahindra began the 2012 season with Danny Webb and Marcel Schrotter.

Schrotter left after Sachsenring and was replaced by Italian Riccardo Moretti, while Webb has been ruled out of this weekend's Brno event due to wrist injuries He has been replaced by local rider Miroslav Popov.

Mahindra has scored points just once so far this year, a twelfth place by Schrotter at the wet Le Mans round.