Mahindra will now invest Rs. 3000 crores more than its previous plan of Rs. 15,000 crore for the fiscal 2020-22 period.
Mahindra to invest Rs. 18,000 crores in the next 3 years as it expects the current market slowdown to come to an end soon. The Indian manufacturer has pumped up its investment for the next 3 years by 20 percent as it expects that the growth will return strongly to the market.
This Rs. 18,000 crores investment by Mahindra will be towards its capacity expansion. The company will add new products to both its automotive and farm portfolios. The company is adding new products to its automotive portfolio including the next-gen Thar, Scorpio and XUV500.
Mahindra will also invest in areas where it finds an opportunity to get suitable returns and profits. A short term investment for one quarter is difficult but when a 7 percent GDP is expected, a certain investment should be made. Mahindra has declared its fourth-quarter results and had predicted better growth than the 3-5 percent in the passenger vehicle segment and 10-12 percent in the commercial vehicle segment. Mahindra also estimates the tractor industry to grow by 5 percent in the current fiscal year.
The Indian carmaker is not slowing down while other companies are reviewing their investments. Rather, the company is increasing its capex and investment by 20 percent over a 3-year cycle. They have not slowed down on the development of new products and have continued to do so with the same vigour as they have done in the past.
Along with the transition to the BS6 norms imposed by the government, Mahindra plans to rekindle its action plans by FY-21. It is planning to get a new C-segment SUV, codenamed W601 that will be manufactured at the Chakan plant, which will also get another variant for Ford as both the companies have previously agreed on product sharing.
Mahindra is getting a new paint factory at Chakan that is capable of painting 3 lakh units a year and trim chassis final line. The company’s investment in the product development of the tractor unit in the next 3 years will be more than the investment the company has made in that segment over the last five years. The company is also close to getting a new manufacturing line for tractors.
– Mahindra to make an investment of Rs. 18,000 crores in the next 3 years
– The company will be investing more than its previous plan
– Mahindra is getting a new paint factory at Chakan
Source – ETAuto.com