Mahindra & Mahindra seventh automotive plant in Tamil Nadu will start operations by 2015-16 with a completely new model range, a local media report said.
An announcement is expected in June, once the general elections are over, the Financial Express (FE) said.
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Pawan Goenka, M&M’s ED & president (automotive, farm equipment & two-wheeler), told FE: “We are close to finalising the deal and will make the announcement around June.
“We will invest over 7-8 years for our new line of products, which will be launched 2015 onwards,” Goenka said, without confirming the location of the plant.
The plant is part of an investment announced by M&M over the next three years towards capacity expansion and new product development.
M&M reportedly is in the process of signing an MoU with the Tamil Nadu government for the new plant which is expected to be spread over 400 acres at Cheyyar in southern Tamil Nadu, the paper said.
New products likely to be made at the facility include a compact SUV (S101), a new mid-size SUV (U301), a global MPV (W202) and a new LCV (P601) to replace the Maxximo. M&M has an R&D facility near Chennai called Mahindra Research Valley which employs about 2,500.
Gaurav Vangaal, automotive analyst for light vehicle forecasting at IHS, told the Financial Express: “Looking at the growth outlook for Mahindra in the next three-five years and the new product portfolio, they require additional lines or capacity. This is the right time to add capacity.”
M&M currently has automotive (non-tractor) plants in Mumbai, Chakan (near Pune), Haridwar, Nashik, Pithampur (two-wheelers) and Zaheerabad.
