Indian automotive manufacturer Mahindra & Mahindra is reportedly considering setting up a manufacturing facility to produce SUVs, at an investment of Rs30bn (US$579.77m).
Press Trust of India, citing Madhya Pradesh Industrial Centre Development Corp Managing Director Manish Singh, said that the OEM had been shown a site in Bagroda, near Bhopal, Madhya Pradesh. Mahindra, however, has not made any official announcement.
“Mahindra & Mahindra is considering investing nearly Rs30bn to open an SUV manufacturing facility, spread over 500 acres, in the state,” the newswire quotes the state government official as saying.
According to Singh, Mahindra is currently holding talks “at the highest level” with the government of Madhya Pradesh. Should this investment actually be made, it will be the biggest such investment in the state, PTI reports Singh as saying.
Mahindra & Mahindra sold a total of 45,263 vehicles in the Indian market last month. This figure was 10% higher than the sales recorded in September 2011, of 41,136 vehicles.
“Post reduction in the CRR (Cash Reserve Ratio), banks have started cutting lending rates and are also looking at reducing vehicle loan rates. We are hopeful of a good performance in the upcoming festive season,” said Pravin Shah, Chief Executive Officer – Automotive Division, Mahindra & Mahindra.
