Mahindra & Mahindra and Renault to setup a manufacturing plant in India

Mahindra & Mahindra and Renault to setup a manufacturing plant in India

Indian automaker Mahindra & Mahindra and France based Renault have confirmed their plans to set up a car plant in India at a cost of just under $1 billion.

This new plant would manufacture the upcoming Renault Logan’s derivatives as well as other vehicles.

Mahindra & Mahindra is currently talking with various state governments looking at potential sites for this plant.

The company expects the first phase of this plant to be ready by 2009. It would have the capacity of manufacturing around 3 lakh cars. It would further be expanded to manufacture five lakh cars per year.

This plant would mostly produce the cars for the local market. Carlos Ghosn, Renault president and chief executive said in a statement on their plans for the Indian market: “Nissan is committed to set up a manufacturing facility in India and could join this alliance. If it does, the capacity would go up further. A decision would be taken in four months.”