Mahindra defers investment in JV plant with Renault, Nissan

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Chennai, Jan 8 (UNI) Mahindra and Mahindra (M and M) today realigned its manufacturing plans and deferred investment in an automotive manufacturing plant it had planned to set up with Renault and Nissan on the outskirts of the city.

In February 2007, M and M, Renault and Nissan had announced their intent to set up a joint manufacturing facility at Oragadam, near here, and signed an MoU with the Tamil Nadu Government.

M and M would utilise the capacity available at its new plant in Chakan and other existing plants to meet its medium term requirements and hence would not participate in the joint plant at Oragadam, a company release here said.

M and M would go ahead with its proposed Mahindra Research Valley at Chengalpattu and MRV test track and tractor plant at Oragadam. It would simultaneously evaluate a new automotive plant at Oragadam to further enhance its capacity, the release said.

Renault and Nissan, however, maintain their development plans for setting up a new industrial plant in Chennai.

Nevertheless, Mahindra and Renault appreciate their ongoing partnership and continue to have a strong relationship through their existing JV that had launched 'Logan' in India, the release added.

UNI SNR GD 1630

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