Mahindra & Mahindra, the largest utility vehicle maker in the Indian market, has announced a capital expenditure of Rs 5,800 crore for a consolidated period in the next three years. Out of this total sum, about Rs 800 crore will be used by Mahindra Vehicle Manufacturing Ltd.
The auto giant plans to rollout as many as 8 new car models in the Indian market in the current financial year. These new launches include some of the most awaited Mahindra vehicles in the country including company's upcoming global SUV and full-fledged four-seater electric car Reva NXR.
While announcing the financial results of the last fiscal, the company said that it will manage the needed funds through a mix of options such as cash in hand and equity dilution.
In the financial results announced on Monday, the company reported a growth of 6.5 percent to Rs606.5 crore in the net profit for the quarter ended on March 31st. The net profit for the fiscal ended on March 31st was Rs23,192 crore, 26 percent higher year on year.
In a statement, Pawan Goenka, president for automotive and farm equipment sector at M&M, said that commodity prices went up by 6-7% for vehicles and 8-9% for tractors. The company did pass on a bulk of the price increase, but not everything.
