Mahindra & Mahindra to invest Rs. 4000 crore for new manufacturing plant in Tamil Nadu

Added in: Mahindra

New Mahindra Scorpio (43)

Mahindra & Mahindra (M&M) have plans to invest a chunky 4000 crore rupees, in order to build a massive manufacturing plant in Tamil Nadu. According to Pawan Goenka, executive director of automotive division at M&M, the investment will be spread across a span of 7 years and will consist of two stages. Goenka said, “In the first phase, we will set up the test track facility. Second will be an automotive plant.” This means that setting up the new manufacturing plant isn’t on top of the company’s list of priorities.

mahindra auto sector sales

The company is awaiting clearance from the government of Tamil Nadu, which has promised the carmaker an area of 255 acres. This plot is nestled in the town of Cheyyar, which is about 100 km from Chennai. Once built and ready, this particular facility would be the second largest in the country, the largest being the one in Pune. The company has high hopes from this new upcoming facility, as it would serve as the bedrock for many of the future models. Upcoming models such as the U301 and S101 compact SUVs, however, aren’t part of this plan as they’re already slated to be released, soon. These vehicles will keep their feet in North India, thereby using M&M’s current facilities. Goenka said that the new plant will be responsible for manufacturing future products for the domestic and export markets.

Mahindra Pantero (4)

Having one’s own test track is a great thing, as it enables the automaker to properly conduct trials and tests in a controlled environment. This, ultimately leads to a better adaptation of learnings that basically translate to a better all-round product for the customer. And in the case of Mahindra & Mahindra, it’s not only their car division, but also their two-wheeler division which will benefit from having a test track.

Source – ET

Read More »
Leave a Reply

Your email address will not be published. Required fields are marked *