Mahindra To Make Rs. 1500 Crore Investment In Nasik Plant For 'U321'

Mahindra has announced that it will be investing Rs. 1500 crore at its Nasik and Igatpuri plants in Maharashtra. The investment comprises development and manufacturing of its new product codenamed 'U321'. While the company has not revealed any details about the upcoming product, it is believed that the upcoming model will be the next generation MPV from the automaker.

Mahindra has stated that the investment at the Nasik plant will be made towards manufacturing of vehicles, while the Igatpuri plant will manufacture and supply engines. Previous speculations have suggested that the automaker's next launch in the country will be an MPV that could replace or be positioned above the Xylo.

The next gen Mahindra MPV was spotted testing last year | Image Source: Team-BHP

The next generation MPV has been spotted in the past and is said to have been partly developed at Mahindra's North American Technical Centre (MNATC) in Michigan, along with the Mahindra Research Valley in Chennai. The new model is believed to be underpinned by a monocoque frame, which will make it the third product in the car maker's stable after the XUV500 and KUV100. If earlier spy shots are anything to go by, the model will be a major upgrade over the Xylo with more appealing proportions, while the cabin is expected to be spruced up with more tech wizardry on offer.

The upcoming project has been qualified as 'Ultra Mega Project' by the government of Maharashtra and is expected to boost investment in the Nasik region. The Nasik plant currently produces a host of Mahindra cars including the NuvoSport, Bolero, Verito, Xylo and even the Thar among others and the new investment will make more room to accommodate the new U321 as well.

Mahindra's next gen MPV is likely to replaced the Xylo

Discussing the company's expansion plans, Mahindra, Managing Director, Dr. Pawan Goenka said, "The Mahindra Group would like to express its deep and sincere gratitude to the Government of Maharashtra for its visionary industrial policies and efficient governance practices. This has enabled us to undertake the next phase of our expansion plans at Nasik. We would like to thank the State Government of Maharashtra and local bodies for their continuous and unstinted support. I am sure that with this expansion, Mahindra will continue to play an integral role in the development of not only the region of Nasik but the entire state of Maharashtra."