M&M defers Chennai plan

Car maker Mahindra & Mahindra (M&M) told the Bombay Stock Exchange (BSE) that it has deferred plans to invest in a manufacturing plant in Chennai with Renault and Nissan.

"The company has reviewed its plans, while Renault and Nissan continue to be fully committed to their industrial development plans," M&M said in its letter to BSE.

In February last year, the company together with Renault and Nissan had announced plans to set up a manufacturing facility at Orgadam, outside Chennai, and signed an agreement with the Tamil Nadu government.

The company will now use capacity available at its new plant in Chakan and elsewhere to meet its medium-term requirements and hence not participate in the joint plant at Oragadam, the M&M communique said.

M&M and Renault continue their relationship through Mahindra Renault Pvt Ltd (MRPL) that launched the Logan in India.

New products manufactured by Renault at its Chennai plant are to be marketed by MRPL under the Mahindra Renault brand andsold through the company's sales channel.