M&M to invest Rs 2,500 crore in Chakan plant

Mahindra & Mahindra (M&M) will invest Rs 2,500 crore in its Chakan plant. The plant will have a capacity to produce 2,50,000 vehicles. This investment will be the part of a total investment of Rs 5,000 crore in the four-year period from FY 09 to FY 12. The company is also planning to launch a number of  four-wheelers including its third SUV which will cost Rs 600-700 crore. Mahindra & Mahindra President Automotive, Pawan Goenka, told reporters on the sidelines of a press meet that the company was planning to launch some products in the four-wheeler category in Q3 FY 10 and medium heavy trucks by December-January. We are also manufacturing a new premium SUV from this plant,” he said. In view of the slowdown in the economy and automobile sector, the company has deferred expansion beyond FY 12 and reduced capex by around Rs 500-crore, Goenka said. The company has tied up with 300 dealers in the US for its proposed SUV launch. Exports to the US will start by end of FY 10, he said.