news outlets are reporting this morning that Mahindra & Mahindra has made an agreement with the Indian state of Tamil Nadu to acquire 400 acres of land to build a new vehicle manufacturing plant to keep up with increasing domestic demand.
It is unclear which product line(s) will be built at the new facility, but it is expected that Mahindra’s total annual vehicle output in Tamil Nadu will increase from 1.3 million to 1.4 million once the plant is up and running. The new plant will be located somewhere near the city of Chennai which is home to many other Mahindra operations. Chennai is the auto manufacturing hub of India.
Reports indicate that the new factory is intended to increase domestic supply of vehicles for India. Mahindra fans in the US will be hopeful that the facility, and increased capacity, will lead to the fulfillment of John Perez’s bold statements made in an email sent to waiting Mahindra truck buyers last week which said “While I cannot give you a firm answer on timing, I can tell you in my estimation, trucks will arrive in the spring of 2011.”
Sources: PickupTrucks.com, Automotive World