Arthur Sissis will join the Mahindra Racing team in place of Efren Vazquez for the 2014 Moto3 season.

Vazquez is moving to Racing Team Germany (Honda), while 18-year-old Australian Sissis arrives after two seasons at Red Bull KTM Ajo.

Sissis, who graduated to the world championship after two years in the Red Bull Rookies Cup, finished twelfth with a podium in his rookie 2012 season.

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This year, the Adelaide-born rider has slipped to 15th overall.

"I'm really happy to join Mahindra - it's a very good team and great to be riding for an Indian manufacturer," said Sisis. "I've spoken to the guys and like them a lot. It's a good time for me to change bikes, and I think I can do well. Miguel has shown the Mahindra can be on the podium, and it's always up near the front. When I've been close to it I can see it's fast. I'm really excited."

Sissis will ride alongside the retained Miguel Oliveira, who gave the vastly improved 2013 Mahindra its first Moto3 podium finish at Sepang this year and was sixth in the world championship.

"Mahindra Racing has been keeping a close eye on a number of young riders since we started our journey in the world of MotoGP," explained Mahindra Racing CEO Mufaddal Choonia.

"Australia has produced many fine two-wheeled champions over the years and we feel that Arthur has real potential. We have shown the MGP3O is a very competitive package so he should have a great opportunity to fulfil that potential with Mahindra."