After zeroing in on Cheyyar in Tamil Nadu for its newest manufacturing facility over 5 years ago, Mahindra and Mahindra have finally confirmed that the new plant will become operational from 2015-16.
A report on the Financial Express quotes Dr Pawan Goenka, executive director and president, who says that the announcement will be made after the ongoing General Elections. The company is understood to be close to finalising the deal and an announcement on this regard is expected in June, says the report.
Since the model code of conduct is in operation throughout the period of the elections, it prohibits existing governments to make any investment announcements.
The Rs 4,000 crore plant will produce almost all of M&M's upcoming products like the compact SUV (Mahindra S101), a new mid-size SUV (Mahindra U301), a global MPV (Mahindra W202) and a new LCV (P601) to replace the Maxximo, says the report.
M&M's existing R&D facility at the Mahindra Research Valley outside Chennai should come in handy to coordinate projects with the upcoming manufacturing facility. At this time, the valley is developing the S101 and the Scorpio facelift.
The S101 and the Mahindra Scorpio facelift have been spied testing repeatedly around the MRV. The company was expected to show the latter at the Auto Expo 2014, however it chose to showcase several new technologies like a hybrid XUV500 and an AMT on the Quanto.
[Source - The Financial Express]