Cash splash for cars
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- Published 29.08.14
Mumbai, Aug. 28: Four auto companies — Mahindra & Mahindra (M&M), Tata Motors, Bajaj Auto and Volkswagen AG — are collectively investing close to Rs 11,500 crore to expand the capacity of their manufacturing plants in Maharastra.
M&M and Tata Motors will invest Rs 4,000 crore each, while Bajaj Auto is set to shovel Rs 2,000 crore. The rest will be invested by Volkswagen.
M&M today said its investment would be spread over a seven-year period and double the annual production capacity of its Chakan facility to 7.5 lakh units.
At present, the plant manufactures M&M’s entire medium and heavy commercial vehicle range, including the 0.75 tonne Maxximo, single and double cabin pick-ups and SUV XUV 500, besides assembling SsangYong’s Rexton.
The company said the fresh infusion would take its total investment in the facility to Rs 8,000 crore. M&M is also planning to make two of the three new platforms at the Chakan unit.
The company will also utilise the money for infrastructure and product developments.
Earlier, the company had decided to put on hold its investment plan owing to issues regarding the refund of value-added tax (VAT) with the state government. Tata Motors and Volkswagen will also expand their capacity at Chakan, while Bajaj Auto will increase production at Aurangabad.