Our Bureau

Hyderabad, March 11

A TEAM from domestic automotive major Mahindra & Mahindra is touring Andhra Pradesh to finalise its plans to locate its recently announced Logan car plant.

The team headed by the M&M Executive Director and President of Automotive Sector of M&M, Mr Alan Durante, called on the State Chief Minister, Dr Y.S. Rajashekhara Reddy, on Thursday and expressed their intent to locate the car project to be taken through the joint venture route between M&M and French automotive major Renault.

The M&M team impressed upon the State Government about the importance of the car project and potential of the spin off industries. It may be recalled, that the M&M, had acquired the assets of the State-owned Allwyn Nisssan and since managed to turn it around.

The M&M group had thus far invested about Rs 180 crore in the Andhra Pradesh plant located near Zaheerabad. The State Chief Minister on his part agreed to extend all necessary support for this ambitious project, including necessary financial incentives package.

The M&M and Renault had together recently announced their plans to build the Logan car that fits in the C Segment by second half of 2006. The Logan car is one of the most attractively priced cars in the world.

Given the advantages of low cost production India offers, it is learnt that Renault may consider this as a base for this part of the world and also explore the possibilities of other small cars from the Renault stable.

It may be recalled that teams from German automotive major Volkswagen AG has made several sorties to Andhra Pradesh to explore the possibility of locating a Greenfield car plant for the region.

However, no decision as yet been taken on the German company car project in the State for which land was earmarked near Vizag.

(This article was published in the Business Line print edition dated March 12, 2005)
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