Mahindra & Mahindra is planning to invest over Rs 27,000 crore in its automotive business in the next three years.
The company plans to launch over 23 all new models - which include 9 internal combustion engine powered SUVs, 7 battery electric vehicles and 7 light commercial vehicles, informed Rajesh Jejurikar, ED - Auto and Farm business at Mahindra & Mahindra.
Besides bringing in new products, the investment will also be used for capacity expansion, taking the annual capacity from 6 lakh units or 49,000 units per month currently, to over 8.64 lakh units or 72,000 units per month.
Jejurikar said, "We have a very aggressive plan on the ICE portfolio over and above the commitment made to BEVs recently. We will be investing about Rs 8,500 crore on ICE SUVs, about Rs 4000 crore for commercial vehicles and Rs 1500 crore for sustenance plan."
"We have demonstrated a track record of very credible performance. And been able to get really good financial returns as well," he noted.
Alternatively, the investment in the Mahindra Electric Automobile Limited will be around Rs 12,000 crore - hence investment for new products and capacity of auto and MEAL will be about Rs 26,000 crore. The company has also lined up an additional investment of Rs 1000 crore in its subsidiaries.
The company is looking at a mid to high-teens growth for this financial year which will help the company grow its sales beyond half a million units. Mahindra & Mahindra has an outstanding order book of 2.2 lakh units.