Mahindra To Invest Rs 4,000 Crore In New Production Facility in Tamil Nadu

After the successful launch of all new Scorpio, the homegrown manufacturer Mahindra and Mahindra is now looking forward to invest Rs 4,000 crore in order to set up a large manufacturing facility in Tamil Nadu. The new production facility will boost company's future models in next seven years.

Executive Director of Automobile Division, Pawan Goenka said, "Our investment will be Rs 4,000 crore in two stages. It will be spread across seven years.” He further added, “In the first phase, we will set up the test track facility. Second will be an automotive plant."

When asked about the land and location for the new production facility, Mr Goenka said that the government of Tamil Nadu has promised to allocate 255 acres of land in Cheyyar in Kancheepuram district. The MoU between the company and the Chennai government will be signed during the Global Investors Meet.

"After land has been allotted to us, immediately, we will start off with the test track facility. After that we will set up the automotive factory. But, it depends on how the auto industry grows," Goenka said.

The automaker is also planning to launch the next gen Bolero in upcoming months. The SUV which has been spotted testing and by looking at the spied images, the car will now feature AMT gearbox.

Last month in January, the homegrown manufacturer Mahindra Mahindra Ltd. retailed 39,930 units compared to 42,685 units in January 2014.

Source: PTI