Mahindra & Mahindra plans to spend INR75bn (US$1.2bn) over the next three years on its automotive and tractor businesses in India.

The company will spend about INR25bn each year, ETAuto.com reported.

Mahindra president, auto & farm sector, Pawan Goenka, said: "The INR75bn capex will include two new compact SUV platforms as well as new intermediate commercial vehicles (ICV) and medium commercial vehicles (MCV) platforms. We will invest around INR3bn on the new platform for ICV and MCV products and we will start launching new products from these platforms in calendar 2017."

Additionally, the production capacity of the plant in Zaheerabad will be expanded to 90,000 units per year. The company plans to use the additional capacity to manufacture mini truck, micro truck and three wheelers.

"The mini truck, micro truck and three wheeler segment together is nearly 250,000 vehicles annually or around 20,000 units a month and our market share in these three segments combined is 16% or around 3,000 units a month. So there's a lot of room to grow even if the segment is slow right now," Goenka said.