Mahindra & Mahindra has zeroed in on an 400 acre plot of land at Cheyyar, Tamil Nadu, to establish a new automobile manufacturing facility. This plot of land was allotted to Mahindra way back in 2009. A formal announcement of the new factory is expected to come in June.
Cheyyar is situated about 105 kilometers away from Chennai, and the government of Tamil Nadu is developing an industrial hub here as Sriperumbudur and Oragadam – the locations of two other industrial hubs of Tamil Nadu known for automobile manufacturing – have become congested over the years.
Mahindra is investing a sum of 4,000 crores over a period of 7 to 8 years, to roll out a new range of products from its new factory at Cheyyar. The S101 compact SUV will be the first Mahindra product to roll out from the new factory in the second half of 2015.
The SUV will feature monocoque construction and its prices could start from as low as 4.5 lakh rupees as Mahindra intends to project the S101 as an affordable alternate to B-Segment hatchbacks. The S101 is tipped to use a new range of petrol and turbo diesel engines that Mahindra is jointly developing with Ssangyong.
Apart from the S101 compact SUV, the Bolero-replacement code-named the U301, an MPV code-named the W202 (Click here to read more about Mahindra’s new MPV range) and the Maxximo mini pick up truck’s successor (code-named P601) will be produced at Mahindra’s new factory at Cheyyar.
Mahindra already has a research and development set up at Mahindra Research Valley, off Chennai, and the Cheyyar factory will be the second major investment in the state from the Indian utility vehicle major. Click here for exclusive renders and information about the next-generation Mahindra Bolero MUV.