India's M&M confirms pull-out from Chennai jv with Renault and Nissan

India's M&M confirms pull-out from Chennai jv with Renault and Nissan

	Published : Tue, 08 Jan 2008 09:56 By : Agencies Print this Story

MUMBAI (Thomson Financial) - India's largest utility vehicles maker Mahindra & Mahindra Ltd confirmed that it has decided to pull out of its Oragadam joint venture with Renault SA and Nissan Motor Co.

M&M, Renault and Nissan formed a joint venture in February 2007 to produce cars at a new plant in Oragadam near the southern Indian city of Chennai. The project required a projected investment of 40 bln rupees.

The facility, which was to produce models for all the three partners, had the capacity to produce up to 400,000 cars and utility vehicles and could build power trains for Renault and Nissan.

Under its new plan, M&M today said it will use the additional capacity at its new plant in Chakan in Maharashtra and other existing facilities to meet its medium-term requirements.

M&M said it plans to evaluate a new automotive plant at Oragadam to further enhance its capacity and that it will continue its Mahindra Research Valley (MRV) at Chengelpet and MRV test track and tractor plant plans in Oragadam.

Renault and Nissan are continuing their development plans for the creation of a new industrial plant in Chennai, the release added.

M&M said the development is not likely to impact M&M and Renault's existing joint venture which makes Logan cars in India.

The utility vehicles maker also said it will market any new products made at Renault's Chennai plant, said M&M.

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