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New Delhi, Sep 8 (UNI) Mahindra and Mahindra (M&M) will invest Rs 1,000 crore in its automotive division, engine development and its capacity enhancement in the next three years.

M&M will also launch a new Scorpio model, Hybrid Scorpio, by the end of 2008.

Out of the total investment, Rs 550 cr will be invested in an engine production at Nashik and rest of the amount will be invested in product development.

''The company is also assembling divisions in Russia and Malaysia by December this year,'' said President (automotive sector) and member of the group management board Pawan Goenka.

The existing assembling facility in Egypt will start production by March next year with an initial capacity of 5200 Scorpio vehicles to be used for Egyptian consumption as well as for exports.

The comapany is in talks with various state governments including Maharashtra, Tamil Nadu and Karnataka to enhance their capacity in automative products. Once the deal finalises, the initial capacity from these units will be one lakh.

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