India's renowned Automaker is reportedly considering investing about 40 billion rupees ($684 million) in setting up a new plant in the country. The new plant is expected to aid in increasing the new model production and help in gaining a better footing in the local market. The new factory is expected to hold a production capacity of about 4,00,000 vehicles each year.
As per sources, top officials from the company are in negotiations with the various state governments to decide over the location for the upcoming plant. As per Wall Street Journal, Mr. Pawan Goenka, president of Mahindra's automotive division said, “The discussions were put on hold because of the elections, but we are now hoping to close in quickly on a decision in the next few weeks and announce it. We know we need to invest now to get capacity ready for two years’ time.”
The company is keeping its fingers crossed hoping that the new Government of Bharatiya Janata Party (BJP) shall reduce and keep a check on the taxes. Mr. Goenka added, “If the overall economic situation improves, interest rates fall and stalled infrastructure and mining projects start opening up. I don't see any reason why the Indian automobile industry can't grow by 8% to 10% this fiscal year.” It is believed that the company may use the new plant to produce new passenger and small commercial vehicles.
