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March 15, 2010

INDIA: Mahindra opens new US$878m truck plant

Mahindra & Mahindra has opened its new commercial vehicle plant in the industrial hub of Chakan in Maharashtra state.

Mahindra & Mahindra has opened its new commercial vehicle plant in the industrial hub of Chakan in Maharashtra state.

The factory will make a range of products from the 0.75t Maxximo to the 49t Mahindra Navistar truck. Navistar launched its first trucks for the Indian market at the Auto Expo in Delhi with sales scheduled to begin by March.

Mahindra’s new SUV and Pik-Up range and product line for the US market will also be manufactured there.

“The Chakan story is characterised by commitment to create a factory of the future, a facility which will set new benchmarks in manufacturing excellence,” said Mahindra Group vice chairman and managing director Anand Mahindra.

“This is clearly evident in its sheer scale and manufacturing processes which is in line with Mahindra’s vision to emerge as a leading full range player with the ability to compete against the best on the global automotive stage.”

Spread across 700 acres, the plant is an investment of over INR40bn (US$878.9m), has been designed for multiple vehicle platforms and includes all manufacturing processes from panel pressing through painting to final assembly.

“It gives me great pride to see one of India’s largest auto plants set up in Chakan which [will] soon [be] the Detroit of India,” said Maharashtra chief minister Shri Ashok Chavan.

Mahindra recently announced plans to launch its pickup truck line in the US, which had been postponed due to delays obtaining emission certification.

“The plant has been envisioned as the hub of innovation and technology for the Mahindra Group,” said the firm’s automotive sector president Pawan Goenka.

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