Mahindra and Mahindra (M&M) Limited, the country's leading utility vehicle manufacturer, is looking at Andhra Pradesh land for its next passenger vehicle and four-wheeler load carriers manufacturing unit. The company has also established Asia's largest tractor production plant at Zaheerabad in Andhra Pradesh, which was inaugurated on March 6, 2013.
Pawan Goenka, President, Automotive Division and Farm Equipment Sector (FES), Mahindra and Mahindra, has confirmed that the company will approach the Andhra Pradesh state government for setting up a new automotive assembly facility. In an interaction with few reporters during the inaugural ceremony of the Zaheerabad plant, Goenka revealed that they are mulling over the possibility of a passenger vehicle production unit. Further, Anand Mahindra, Chairman and Managing Director (MD) of the $ 15.9 billion Mahindra Group, said that the company is eager to partner with the Andhra Pradesh State Government in various socio-economic sectors, such as training youth for unemployment.
At present, M&M's new Zaheerabad-based manufacturing unit produces three-wheelers, light commercial vehicles and the Bolero Sports Utility Vehicle (SUV). The company spent Rs. 300 crore on the facility that boasts of an annual output production yield of over 1 lakh units. The upcoming M&M passenger vehicle plant is extremely vital from the company's growth perspectives in both domestic and overseas exports markets. Mahindra SUV models are a rage at the moment with many flagship products selling like hot cakes in the country. Many models like XUV500 and Scorpio are facing waiting periods, which makes a capacity expansion plans a real need of the hour for M&M.