Mahindra and Mahindra along with Nissan and Renault to build a auto plant in Chennai

The south Indian city of Chennai just got its latest auto project. Indian automaker Mahindra and Mahindra has announced their plans to establish an Rs 4,000 crore car manufacturing facility near the city in partnership with French car giant Renault and Japan’s third largest automaker Nissan.

The three companies together signed on a deal with the Tamil Nadu government for this facility. This plant is likely to have an installed capacity to make 4 lakh vehicles a year. Production is scheduled to begin in 2009.

The three companies aim to manufacture vehicles in this plant which would take on competing products from Maruti Suzuki, Hyundai and Tata Motors.

Nissan’s executive vice-president, Carlos Tavares added that the advantage of working in collaboration with M&M and Renault were compelling.

The Mahindra group would have a 50 per cent stake in the project. Renault and Nissan would take the rest of the share in this project.

This is great news for the Indian auto market as they are now expected to get some real exciting products from these two global automakers in collaboration with Mahindras.

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