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Directors News
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Indian Car Manufacturer Goes Mainstream
Indian car giant Mahindra has joined forces with Nissan and Renault to build a £458 million factory in Madras (Chennai) with production set to begin in 2009. Mahindra will own 50% of the plant, with the remainder split equally between the 2 partners. Production targets are 400,000 vehicles per year.
Mahindra already owns a joint venture with Renault in Maharashtra, but Madras seems to be emerging as the centre of the country’s growing motor industry. The Indian economy’s strong growth coupled with low costs is enticing western companies to branch out into India. Both Hyundai and Ford already operate plants in Madras, with BMW allegedly due to follow suit in the near future.
Mahindra is India’s 4th largest motor manufacturer. Hitherto their range has focused on commercial and utility vehicles. The alliance with Renault and Nissan looks set to bring mainstream models into the range, enabling expansion of passenger car sales. Vehicle production in India is expected to exceed 2 million by 2010.
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