Mahindra & Mahindra on August 9 clarified that a news report about the automaker seeking Centre's nod for a $3-billion joint venture with China's Shaanxi Automobile Group is 'unfounded'.
Earlier on August 9, Reuters reported, citing sources, Mahindra & Mahindra and Shaanxi have agreed to set up a $3 billion joint venture to build a car manufacturing plant in India and are awaiting New Delhi's approval.
The plant is proposed to be set up in Prime Minister Narendra Modi's home state of Gujarat, two sources with direct knowledge of the matter told Reuters.
The proposal includes building an export-oriented, integrated manufacture hub for assembled cars - known as completely built-up units - as well as engines and car batteries, the sources said.
Mahindra has sought a government nod for the Chinese investment, reported Reuters.
"As there has been some unnecessary speculation raised by the Reuters article, the Company on its own considers it necessary to clarify to the stock exchanges that the article is unfounded and there is no truth in the matter," M&M told stock exchanges.
Indian government approval has been necessary for any Chinese investment into the country since 2020, when New Delhi tightened its restrictions on Chinese investment following the clashes in Galwan Valley in June 2020.
The investment proposal comes at a time when India is looking to ease restrictions on Chinese investment in non-sensitive sectors like solar panels and battery manufacturing, where New Delhi lacks expertise.
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