To produce 1,000 units initially owing to sluggishness in the market
Mahindra & Mahindra on Wednesday opened its new tractor manufacturing unit here.
The facility, considered biggest in Asia with a capacity of manufacturing one lakh units a year, was formally inaugurated by Chief Minister N. Kiran Kumar Reddy in the presence of M&M Chairman and Managing Director Anand Mahindra. The company plans to manufacture 1,000 units at present owing to the sluggishness in the market and full capacity utilisation could take about four years.
Pawan Goenka, President, Automotive and Farm Sector Equipment, M&M, said the company had invested Rs.300 crore in the project that also had a supplier park. M&M had already roped in seven major suppliers to set up shop in the new facility with investment estimated at Rs.150 crore.
The company was hopeful that over a dozen suppliers would venture into the park in due course.
M&M at present has a market share of about to 42 per cent, and is a leader in Andhra Pradesh with 48 per cent share.
He said the company would launch a new variant (e2o) of electric vehicle shortly. “But the volumes are likely to be low as pricing is at the higher side,” he said.
Asked about the company’s plans to make a foray into the four-wheeler segment passenger and load carrier vehicles, he said M&M would consider the offer made by the State government and “see how it works out.”
The company, he said, had never claimed it had firmed up plans to make a foray into the small car segment.
Keywords: Mahindra & Mahindra