Indian Auto major, Mahindra and Mahindra is targeting to enter at the American car market. The American car market accounts for more than a fifth of all cars sold throughout the world. Mahindra & Mahindra is planning to spend around Rs 2,000 crore to increase the capacity of its Chakan plant that which will start its operations in October.
The company is in yet to build a new unit at Chakan and is channelizing over Rs 5,000 crore capex for this venture. Mahindra and Mahindra will be manufacturing three new vehicles from this plant.
“That takes care of half the space we will have in Chakan. There clearly will be an investment beyond phase I. Let’s say, we do about 300,000 units now, if we add another 250,000 units. We will invest close to Rs 1,500-2,000 crore on that,” said Pawan Goenka, President, M&M Automobile Division.
The company will launch its US-specific pick-up truck in February-March 2010 and this will be followed by the American version of Scorpio. The company will have some global vehicles as their US distributors. “Of course, any future products in India will keep a US launch in mind, hence forth,” said Goenka. Mahindra and Mahindra have already tied up with Global Vehicles, to distribute Mahindra veicles in the U.S.