M&M To Commission Plant Near Chennai

Mahindra & Mahindra, utility vehicle maker, will be setting up its own plant near the south Indian city. This decision has come just after weeks opting out of a proposed joint venture with Renault and Nissan Motor for a manufacturing facility at Chennai. M&M singled out of the deal earlier this year and subsequently announced it was setting up a greenfield plant at Chakan, near Pune, with an estimated investment of Rs 1,500 crore, to produce 300,000 vehicles.

Commercial production at Chakan may begin in two years, about the same time Renault and Nissan will launch production at the Chennai unit. M&M, Renault and Nissan had in February last year announced plans to set up a plant with an investment of Rs 4,500 crore, to produce 4,00,000 vehicles a year for the three companies.

The plant will make trucks for M&M''s venture with Navistar Inc''s International Truck & Engine unit and will also have a powertrain facility. This will be through the Mahindra Renault JV which makes Logan models at the Nashik plant. Other Renault products on the Logan platform will also be sold through this JV company in the years ahead. M&M plans to unleash a five-seater mass market utility vehicle (UV) next year. It would be priced between Rs 4-5 lakh. The new SUV will be first rolled out from the company''s proposed plant in Chakan, near Pune.