Mahindra to build a 4 lakh sq. ft. vehicle assembly plant in the US
Mahindra's first new factory in Detroit in over 25 Years being planned for off road utility vehicles.
Mahindra and Mahindra, leading SUV makers in Africa has long tried to enter the US markets, but have not managed to establish themselves in the leading automotive market in the world. The company already exports both tractors and information technology to the US but does not have any passenger vehicle presence in the country.
In the past years, Mahindra has tried on multiple occasions to establish themselves in the US. They even tried setting up a dealer network, but we all know how that ended. Now, they are trying once again, but this time in a full fledged manner.
Mahindra will announce a new 400,000 sq ft assembly plant to manufacture and assemble vehicles in the US. The new plant will come up near Detroit. A special press conference to this effect is being held at Auburn Hills, Michigan for November 20, 2017. It is also to be noted here that Mahindra already has a two wheeler on sale in the US called GenZe – Mahindra’s first electric scooter.
The new assembly plant will be the company’s first factory in the region in over 25 years with plans to build off-road utility vehicles. Mahindra and Mahindra has invested $1.5 billion in the new plant in Detroit which is expected to generate over $2.5 billion revenue while employing 3,000 persons. The company also estimates doubling these figures over the next 2-3 years.
This new assembly plant will be a major milestone where Mahindra and Mahindra is concerned. Off road utility vehicles will be designed at the company’s North American Technical Center in Detroit opened in 2012. However, Mahindra and Mahindra will not be mass producing this category of vehicles which are unique to the US and are not yet approved for highways. No further details of this new plant are known, but one can expect more inputs at the press conference later this month.