M&M invests Rs 250 crore in Zaheerabad plant expansion, to roll out new SCV shortly

The soon-to-be-launched small commercial vehicle, dubbed P601, will be manufactured at this plant which can now churn out 1,40,000 units a year.

  • Updated On Apr 22, 2015 at 06:21 PM IST
Mumbai - The market for small commercial vehicles may be facing rough weather, but Mahindra & Mahindra expects it to clear soon as it invested Rs 250 crore in a plant at Zaheerabad in Telangana to expand its capacity by about two-thirds.

The soon-to-be-launched small commercial vehicle, dubbed P601, will be manufactured at this plant which can now churn out 1,40,000 units a year.

Telangana Chief Minister K Chandrashekar Rao inaugurated the expanded plant on Wednesday.

M&M Executive Director Pawan Goenka said the company has invested more than Rs 1,100 crore in the region, generating 3,500 jobs across its tractor and automotive plants.

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The P601, a half- tonne truck, will be launched in the next few months and will compete with the Tata Motors Ace Zip. It is one of the key launches M&M is planning in the small commercial vehicle space, where it has been losing both volume and market share.

In a market where sales of sub- two- tonne mini trucks and mini vans declined more than 20% in fiscal 2015, M&M's sales dropped over 45% to about 30,000 units.

The company is planning to produce two more models, the P405 and P 409 – a sub- one- tonne mini truck and van, respectively – to boost the Maxximo range. These vehicles are expected to be launched in the second half of 2015.

Six key auto component suppliers are likely to follow M&M to the region to set up their own facilities which investment of Rs 100 crore.

Mahindra had inaugurated its tractor facility in Zaheerabad in 2013. It produces 3,500 tractors a month.
  • Published On Apr 22, 2015 at 06:13 PM IST
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