Mahindra Navistar to invest Rs250 crore for production expansion

Mahindra Navistar Automotives announced plans to expand production. “We have already invested Rs710 crore (US$144.4 million) at the Chakan unit, out of the total project cost of Rs1,000 crore (US$203.4 million). We will be investing around Rs250 crore (US$50 million) in the next couple of years to increase production capacity of HCVs and expand our distribution network,” said Mahindra Navistar Director Pawan Goenka. Mahindra Navistar Automotives is a 50-50 joint venture between India’s Mahindra & Mahindra and Navistar International Corporation, a U.S.-based manufacturer of medium and heavy trucks and mid-range diesel engines. The company has Rs750 crore (US$151.3 million) of equity and Goenka says it is currently not making any profits because present volumes are very small. With the completion of the planned expansion, Goenka said the company is expected to break even. Mahindra Navistar Automobiles recently launched MN25 in the heavy commercial vehicle (HCV) category, followed by the MN31, MN40 and MN25 tippers. “After seeding sales in select markets and building a formidable service network of nearly 940 service points on strategic trucking routes, it is all set to take on the length and breadth of the country through its commercial launch. Today, we are a full-range commercial vehicle player with a pan-India service network dedicated towards our customers,” Goenka said. (December 7, 2011)