Mahindra and Mahindra is setting up their new manufacturing unit in Cheyyar near Chennai in Tamil Nadu. Its proposal to set up the new manufacturing unit has received approval from the Tamil Nadu state government. The new project calls for investment of about Rs. 1800 crores and requires 450 acres of land for producing 150,000 units annually. Tamil Nadu government has already cleared 200 acres of land for the project that will be used to manufacture tractors, commercial vehicles, SUVs and auto components. A test track is also an integrated part of the overall project.

M&M also has about 100 acres of land at Mariamalainagar World City where it intends to set up world class research and development center. The MoU for this project will also be signed shortly between the government and the company. It will generate about 2500 jobs in the region directly and few thousand jobs indirectly. By default, it would have gone to Maharashtra where M & M has huge land bank. But, it is a hard won project for Tamil Nadu considering the slowdown in the global market. It is expected to make it an undisputed leader in the auto space which will be difficult to be challenged by other States, stated sources close to the project.