Saturday, April 28, 2012
By Manoj Kumawat
Mahindra plans to set up a plant in Uttrakhand
Mahindra India has decided to establish a production unit in Uttrakhand state and will be investing Rs 3000 crore for it. As per the media reports, the state government through an official release has confirmed that the SUV maker will be setting up its new plant in the state. Meanwhile there is no announcement as to which cars will be produced there but experts suggest that it will be Ssangyong Mahindra Korando and Ssangyong Mahindra Rexton apart from other Ssangyong cars that will be produced there. Notably, Mahindra is in the process of making India a hub for the production of Ssangyong cars. Both the Korando and Rexton are expected to be launched in India this Diwali.
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The SUV maker could also plan to shift some burden from the Maharashtra plant and could produce Mahindra XUV 500 and Mahindra Verito Compact sedan at the new facility. These are only far guesses as the new unit is at the planning stage and it will take time when the actual production could begin there. Meanwhile, the plant could have an annual capacity of producing 2.5 lakh cars annually. As per the media reports, Mahindra has asked the state government of Uttrakhand to allot 500 acre land. Reports further suggest that the plant could be located at Sitargunj.
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It is worth mentioning that Mahindra is facing trouble in Maharashtra following the recent change in VAT policy as well as other factors and lately the SUV maker has thought to stop producing cars at its plant in Maharashtra. Search for a new plant in Uttrakhand is seen in the light of this. Significantly, Mahindra cars in India especially Mahindra Xylo, Mahindra XUV 500 and others are gaining momentum and Mahindra is in the process of launching the Mahindra Xylo Mini and Mahindra Verito as well as other cars from Ssangyong stable and it wants to make sure that the production does not suffer.