Maharashtra lines up auto firms to beat TN, Gujarat
Car firms to invest 11,510cr to add capacity
Leading domestic and global automobile manufacturers have announced a massive investment worth ` 11,510 crore for capacity addition and new product development in Maharashtra.
The mega investment projects announced on Thursday would also help Maharashtra to become an international auto hub beating other major industrial states like Tamil Nadu and Gujarat.
While Mahindra & Mahindra ( M& M) and Tata Motors announced a fresh investment of ` 4,000 crore each, Bajaj Auto and Volkswagen have planned an investment of ` 2,000 crore and ` 1,510 crore respectively in Maharashtra.
All four companies on Thursday signed a memorandum of understanding ( MoU) with the government of Maharashtra. M& M plans to expand its manufacturing facilities for automobiles at its Chakan plant in Pune to 7,50,000 units from the current capacity of 3,20,000 units.
“We will do it in phases. In the next 18 months, our plan is to increase our capacity at the Chakan plant to 4,50,000 units and scale it up further to 7,50,000 units in seven years. Our investment would also provide direct employment to around 2,500 persons and indirect employment to additional 5,000 people,” said Anand Mahindra, chairman, Mahindra Group.
Mr Mahindra added that his company would start rolling out the first product from this venture in 2016.
Tata Motors said that it plans to invest ` 4,000 crore to expand its manufacturing facilities at its Pune plant, which will provide employment opportunities to 1,200 people.
“Our investment is not specifically for capacity expansion, but it also includes investment in research and development and new product development,” said Ravindra Pisharody, executive director, Tata Motors.
While Volkswagen India has planned its investment of ` 1,510 crore for the purpose of manufacturing of diesel engine at Chakan, Bajaj Auto has planned a major capacity addition in two phases for its twowheelers and commercial vehicles at its Waluj plant in Aurangabad.