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Utility vehicle maker Mahindra & Mahindra (M&M) today said it will decide on a final location for its new facility by the end of the current financial year.
Besides, the Rs 4,000 crore the company has earmarked for setting up its new unit, M&M has firmed up investments to the tune of Rs 10,000 crore over the next three years on capex programmes and for launching new products.
Pawan Goenka, president (automotive and farm equipment division), M&M said, “Over the next three years we will invest Rs 10,000 crore. Out of this, Rs 7,500 crore will be for capex in automotive and farm equipment sectors. Another Rs 2,500 crore will be invested in group companies.”
As part of overall capex, the company is developing two-three new platforms for brand new products which will hit the market around FY 2016. "These new products will be rolled out from the new units, the location for which will decided within this fiscal," Goneka said.
The company is still in discussion with the Maharashtra government. Earlier, the company had decided to put on hold all investment at its Chakan facility due to VAT refund issues with Maharashtra Government.
Besides, the Rs 4,000 crore the company has earmarked for setting up its new unit, M&M has firmed up investments to the tune of Rs 10,000 crore over the next three years on capex programmes and for launching new products.
Pawan Goenka, president (automotive and farm equipment division), M&M said, “Over the next three years we will invest Rs 10,000 crore. Out of this, Rs 7,500 crore will be for capex in automotive and farm equipment sectors. Another Rs 2,500 crore will be invested in group companies.”
As part of overall capex, the company is developing two-three new platforms for brand new products which will hit the market around FY 2016. "These new products will be rolled out from the new units, the location for which will decided within this fiscal," Goneka said.
The company is still in discussion with the Maharashtra government. Earlier, the company had decided to put on hold all investment at its Chakan facility due to VAT refund issues with Maharashtra Government.
Elaborating on new products Goenka said: "Out of the two platforms, one will be led by Mahindra and one by Ssangyong. Additionally, we are also working on a common platform to roll out six new engines of lower displacement but with higher power.” Mahindra and Ssangyong would utilize three engines each to strap on to products.
When asked about the sales expectations in the upcoming festive season, Goneka said: "The company expects sales to be better than July and August this year but less than last festive season as market is in difficult situation."
He, however, ruled out any price hike saying the company has not been impacted much by the rupee depreciation due to high localization levels of products.
In August, Mahindra & Mahindra reported 17.32% decline in its total sales at 37,897 units while in July, sales declined by 21.17% at 37,096 units.
