Wednesday, 31 August 2011

M&M to set up new automobile plant in Tamil Nadu

Auto major Mahindra and Mahindra is all set to establish an automobile manufacturing plant with a testing facility at Cheyyar, about 100 km from here, for which it has entered into an MoU with theTamil Nadu government.  The Mou was signed early this year to set up the plant on 400 acres at Cheyyar at an investment of Rs 1,800 crore.

Mahindra and Mahindra, Automotive and Farm Equipment sector President Pawan Goenka said they would also be setting up a testing facility on 150 acres land.  "It is 400 acres land. In the first phase we will set up a proving ground -- a testing facility on 150 acres, which will require minimal investments of Rs 100-Rs 150 crore," he said.

"We have committed investments of Rs 1,800 crore spread over seven years. Right now the focus is on adding to our Chakan plant. After that we will focus on Cheyyar plant.In the second phase we will also have an automotive plant," he said.

On sales of mid-size sedan Mahindra Verito, rebranded from Logan after end of their association with French auto major Renault, he said sales were very encouraging.

"Last year in July-August we sold about 400-500 units. This year consistently we are selling about 1500 vehicles. We are very happy to see changes we have made (in Verito)," he said.

He said the main launch would be sometime in April, 2012. "We will have significant changes in styling", he said.

Mahindra which is currently also reported to be working on Mini Xylo and a sub 3 Lac car will also roll out from Tamil Nadu plant ?


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