Mahindra is considering setting up an SUV manufacturing facility in the state of Madhya Pradesh with an investment of INR30bn (US$577.1m).

The automaker has been shown some land in Bagroda which is 20 kilometres (12 miles) from the state capital Bhopal. However, an official announcement has not been made by the company on the development.

Madhya Pradesh Industrial Centre Development Corporation's managing director, Manish Singh told the Economic Times: "Mahindra and Mahindra is considering spending nearly INR30bn to open a sports utility vehicle manufacturing (SUV) facility on 500 acres in the state."

Singh said Mahindra is in discussions at the highest level with the government.