Mahindra & Mahindra has inaugurated an extension to its Zaheerabad automotive manufacturing facility in Telangana in which it has invested Rs 250 crore.

In a statement, the company said that the extended facility, which was opened today by Telangana chief minister K Chandrashekar Rao, will manufacture the P601 small commercial vehicle slated for launch in the first half of 2015.

With the extended facility, production capacity at M&M’s Zaheerabad unit will stand augmented to 92,000 vehicles per annum  while overall capacity will be 140,000 vehicles per annum

The Zaheerabad plant will manufacture sub-one tonne commercial vehicles which include four-wheel load and passenger vehicles, in addition to the UVs, LCVs and three-wheelers which are currently manufactured there. The expansion will provide additional direct and indirect jobs, taking total employment to 3,500 workers across the automotive and tractor plants.

Dr Pawan Goenka, executive director, M&M, said: “Our Zaheerabad plant incorporates a flexible and agile approach to manufacturing which will ensure that it is able to respond rapidly to evolving customer needs. With our investment of over Rs 1,100 crore till date and creation of over 3,500 jobs, we are significantly invested in the state of Telangana.”

Pravin Shah, president & chief executive, automotive, M&M, added: “We will work towards manufacturing some of the best commercial vehicles from our Zaheerabad plant and help generate employment in and around the plant either directly or indirectly through our suppliers and other business partners. Six of our suppliers are currently setting up plants in the supplier park nearby, with investments of over Rs 100 crore.”