A year after Mahindra & Mahindra pulled out of its joint venture with global majors Renault and Nissan to produce cars at Oragadam, the Indian Sport Utility Vehicle (SUV) major is all set to re-enter Tamil Nadu by driving further south to set up a car plant in Cheyyar, about 100km from Chennai, in Tiruvannamalai district.
The investment, if it materialises, will be the second big ticket investment in Cheyyar after global shoe major Nike's manufacturing unit, which was inaugurated in August. Mahindra & Mahindra'ss plans in Cheyyar are likely to spur automotive investments in the area.
“The state government will allot about 400 acres for the project. The modalities are still being worked out and an MoU with Mahindra & Mahindra will happen in two months. Mahindra & Mahindra will invest about Rs 1,500 Crore for the car project,”state government sources said.