Mahindra has acquired 400 acres of land at Cheyyar in Tamil Nadu. The company will establish an automobile manufacturing plant along with a testing facility at Cheyyar. This new plant will see an investment of Rs. 1800 crore and will be the company’s second facility after Chakan. However this new plant is not good enough to do multiple line of products and will do only single line of products. Production is expected to commence by the end of next year.

“It is 400 acres land. In the first phase we will set up a proving ground, a testing facility on 150 acres, which will require minimal investments of Rs. 100-150 crore. We have committed investments of Rs 1,800 crore spread over seven years. Right now the focus is on adding to our Chakan plant. After that we will focus on Cheyyar plant. In the second phase we will also have an automotive plant,” Pawan Goenka, President, Mahindra, Automotive and Farm Equipment Sector, said.