Mahindra, Renault and Nissan are partnering in the construction of what will potentially be one of the largest automotive production sites in India, with an ultimate production capacity of 400,000 units per year.
The three have selected Chennai, in the state of Tamil Nedu, as the location of the site in which they are committing to invest a minimum of Rs 4,000 crore (€686 million / $902 million) over the next seven years. Mahindra will hold 50% of the venture, and Renault and Nissan will hold 50%.
The project will provide vehicle production for each carmaker, plus a powertrain facility for Renault and Nissan. A range of products suited to the requirements of Indian customers will be manufactured at the new production site. Production is expected to begin in the second half of 2009.