M&M to set up Rs550 crore plant for new MPV Ingenio
16 August 2006Mahindra & Mahindra has signed a MoU with the government of Maharashtra to set up a new production facility at Nashik. The company will spend Rs550 crore on the plant, which would come up adjacent to its existing facility in Nashik. Once the new plant goes on stream, M&M's total capacity at Nashik would rise to 150,000 vehicles per annum
The facility would roll out a new multi-purpose vehicle, code named Ingenio, by the year 2008. Ingenio is being developed on a completely new platform with focus on contemporary design and interior space. The vehicle is expected to replace the existing Bolero range of utility vehicles to compete with the likes of Tata Sumo and Chevrolet Tavera.
Ingenio is M&M's second attempt at developing a model, which would redefine standards in its class. The Scorpio SUV was the first model, developed indigenously, which achieved phenomenal success in the domestic market.
Following the domestic success of the Scorpio, the model has been launched in many overseas markets. The company may also look at overseas markets for the Ingenio as well.
M&M is also gearing up to launch an entry-level passenger sedan through a JV with French auto major Renault. The JV is expected to launch the model Logan, which has been received well in price-conscious markets, by next year. The Logan would be slotted against the Maruti Esteem, Tata Indigo and Ford Ikon.
The new Nashik facility may also produce the Scorpio and Logan models. M&M said the expanded capacity at Nashik would take care of its requirements till 2009. The company had announced earlier that it would set up a new plant by 2009.