Maharashtra: The new auto investment destination

30578 Investors following Hero Motocorp. Share this News with them.

0

Like this story, share it with millions of investors on M3

Maharashtra: The new auto investment destination

Mahindra and Mahindra announced a Rs 550 crore expansion this week in Nashik and said it's also planning a new one lakh capacity automobile plant by 2010. CNBC-TV18 reports that in August alone auto majors have announced investment plans of nearly Rs 4,000 crore.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » ALSO READ See latest News about Hero Motocorp See previous management interviews See what other Experts & Brokerages are saying about Hero Motocorp Hero Motocorp BSE | NSE 31/05/12 Are Mutual Funds betting on Hero Motocorp? Other Stocks in this news Mahindra and Mahindra | Tata Motors (Warrants) |

Mahindra and Mahindra announced a Rs 550 crore expansion this week in Nashik and said it's also planning a new one lakh capacity automobile plant by 2010. CNBC-TV18 reports that in August alone auto majors have announced investment plans of nearly Rs 4,000 crore.

August has been a good month for the Maharashtra government, in terms of projecting itself as an investment destination. Car major General Motors' decision to set up a Rs 1,350 crore plant at Talegaon and Mahindra & Mahindra's plans to invest Rs 550 crore in Nashik for its new vehicle project has given the state a major boost.

These announcements come only weeks after the Tata-Fiat alliance said it would set up a plant each for cars and engines at Ranjangaon, near Pune. The investment for these plants is expected to be around Rs 2000 crore.

M&M is planning a major investment for a new plant that will be up by FY'10. The company may have a total capacity of upto 5 lakh units, which means a huge investment.

Nick Reilly, Group Vice-President, GM says that India is one of the fastest growing markets, and they are very keen to be a leading player in it. The investment will hike GM India's production capacity to 2.25 lakh vehicles by September 2008, crucial to achieve its vision of 2010.

The plant may also become an export hub for small cars at a later stage. GM India's' new plant may also become an export hub for small cars at a later stage.

But it's not only GM and M&M and the investment destination is not only Maharashtra. Hero Honda will invest Rs 1900 crore along with its vendors by 2010 for a greenfield plant in Uttaranchal. This is part of Honda's whopping Rs 3,000 crore investment plan in India by 2016. It will also invest around Rs 200 crore for a new car plant by end 2007, which will double its capacity to 1lakh units.

Investment plans worth Rs 3800 crore announced by automobile majors within a span of two-weeks, is perhaps the first instance of such huge investment commitment made by the industry players in quick intervals. The production from these investments will be split between domestic consumption and exports, and this shows manufacturers' confidence in the potential of the domestic market and India as an export hub.