Country’s largest utility vehicle maker, Mahindra & Mahindra (M&M) plans to invest INR 1500 crore in its Igatpuri and Nashik facility in Maharashtra to plan for the introduction of its new project called “U321”.
The investment in Igatpuri plant will be for manufacturing and supply of engines, while the investment in the Nashik plant will be towards the manufacturing of vehicles. The project will called as an Ultra Mega Project.
The U321 project is currently being developed out of Mahindra’s North American technical centre. It will be a premium MPV which is expected to take on Toyota Innova when it will be launched in the second half of FY-18.
Pawan Goenka, Managing Director of Mahindra and Mahindra said thanks to efficient government practices and good industrial policies in Maharashtra, which has led to a novel phase of expansion at Nashik factory.
Goenka said, “Mahindra will continue to play an integral role in the development of not only the region of Nashik, but whole of Maharashtra.”
The project will play a significant role in accelerating the sales momentum for Mahindra in FY-18, with volumes are under pressure due to the intense competition.
M&M has registered a low single digit growth and this is despite the introduction of new launches like KUV and TUV in a utility vehicle space that has been growing strong double digit.