Mumbai, Jan 8 (UNI) India's leading utility vehicle maker, Mahindra&Mahindra (M&M) today said that it would defer investment plans in the Chennai manufacturing facility, under joint venture with Renault and Nissan Motor.
M&M said that it has reviewed its plans, while the two foreign firms -- Renault and Nissan -- maintained their plans for the venture, which had envisaged an investment of nearly USD 1 billion in a greenfield facility at Orgadam near southern Chennai to make 4,00,000 vehicles in seven years.
M&M will utilise capacity available at the new plant in Chakan and other existing plants to meet its medium term requirements, and would not participate in the JV plant at Orgadam, M&M said in a statement.
M&M has since reviewed its plans, while Renault and Nissan continue to be fully committed to their industrial development plans.
It has a separate joint venture with Renault to make the no-frills Logan Sedan in western India. The Company said that they ''continued to have a strong relationship''.
Renault and Nissan maintain their long-term commitment to India, with local development including design, engineering, component outsourcing and manufacturing, a release said.
Nevertheless, new products made by Renault at the Chennai plant are planned to be branded as Mahindra Renault and marketed through the existing Mahindra Renault venture.
M&M will utilise its existing capacity to meet its medium-term requirements and also evaluate a new automotive plant at Oragadam, the Company added.
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