M&M readies Rs 1,500 Cr. for Chakan, Tata Motors to invest Rs 6K Cr. in Pune

Mahindra, which earlier this year, pulled out of a planned venture with Renault and Nissan Motor, would start operations at Chakan, near Pune, in two years to make 300,000 medium and heavy commercial vehicles. It will invest $1 billion (Rs 1,500 crore) in a new plant as it steps up capacity to take on increasing competition. Mahindra, aims to double domestic sales and quadruple exports by 2010.

Tata Motors would invest Rs 6,000 crore over four-five years to increase capacity at its Pune plant, add new products and build vehicle testing facilities. The investment will increase capacity at its Pune plant by about 40% to more than 600,000 units a year. Tata Motors, which last week announced a $2.3-billion deal to buy Jaguar and Land Rover from Ford, has announced it will raise $4 billion for its local and overseas expansion plans.

Due to competition, things are getting harder, and the only way to offset it is by creating excitement around new products. Both the companies have lined up a range of products for the coming fiscal year with hopes to better the performance.