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M&M is contemplating to set a new automotive and tractor plant in Oragadam, near Chennai. The move of the sports utility vehicle major is partially motivated by the fact that they have allocated land in the region. Mahindra & Mahindra also aims at enhancing the production capacity of the company. The automotive plant is principally going to deal in the production of cars. Mahindra through this venture will emerge independent from its joint venture with Renault and Nissan.
Pawan Goenka, President Automotive Projects, M&M stated that the proposed tractor plant would make a range of tractors. About the capacity of the tractor plant, Mr. Goenka remarked that it could be around 50,000 tractors in a year. He also expressed that it would be convenient if both the tractor and automotive plant be on adjacent locations. The company executives are already engaged in talks with the Tamil Nadu government over the deal. Mr. Goenka asserted that Mahindra has several business interests in Tamil Nadu.
Mr. Goenka also revealed that a new sports utility vehicle – SUV is also being planned and would be out in the market by the end of 2010. The new SUV would first be produced in the proposed plant at Chakan near Pune. Mahindra & Mahindra despite its pull out from the joint venture with Renault and Nissan would continue to sell Renault products.
