Mahindra & Mahindra is planning to invest over Rs 27000 crore in its automotive business in the next three years.
The company plans to launch over 23 all new models – which includes 9 internal combustion engine powered SUVs, 7 battery electric vehicles and 7 light commercial vehicles, informed Rajesh Jejurikar, ED – auto and farm business at Mahindra & Mahindra.
Apart from bringing in new products, the investment will also get into expansion of capacity – which will take the annual capacity of Mahindra & Mahindra from 6 lakh units or 49000 units per month at present to over 8.64 lakh units or 72000 units per month capacity.
Jejurikar said, “We have a very aggressive plan on the ICE portfolio over and above the commitment made to BEVs recently. We will be investing about 8500 crore on ICE SUVs, about Rs 4000 crore for commercial vehicles and Rs 1500 crore for sustenance plan.”
“We have demonstrated a track record of very credible performance. And been able to get really good financial returns as well,” he noted.
Alternatively, the investment in the Mahindra Electric Automobile Limited will be around Rs 12000 crore – hence investment for new products and capacity of auto and MEAL will be about Rs 26000 crore. The company has also lined up an additional investment of Rs 1000 crore in its subsidiaries.
The company is looking at a mid-teens to high-teens growth for this financial year which will help the company grow its sales beyond half a million units.
Mahindra & Mahindra is sitting on an outstanding orderbook of 2.2 lakh units.
