Mahindra and Mahindra (M&M) is setting up a passenger vehicle plant in Tamil Nadu. The news was confirmed by a government official from Tamil Nadu. “Mahindra and Mahindra has confirmed investment in the state and this would take the total car manufacturing capacity in Tamil Nadu to 1.4 million units per annum from the current 1.3 million units” said M. Velmurugan, executive vice chairman, Guidance Bureau, Industries Department. According to Mr. Velmurugan, the company has acquired 400acres of land in the state and will acquire some more for the plant.
According to some reports, Mahindra got a very good deal from the TN government for land acquisition. The company had earlier said that it would be setting up a tractor plant in the area. However, the company seems to have changed its strategy now.