India-based Mahindra & Mahindra (M&M) is planning to invest (INR40bn)$716.9m to build a new four-wheeler vehicle manufacturing plant in Tamil Nadu, India.
M&M's move follows Maharashtra government's assessment to remove a sales tax incentive for the Chakan auto plant.
The company said that it has shortlisted Tamil Nadu along with Madhya Pradesh and Uttarakhand for setting up a new manufacturing plant.
According to M&M, the construction on the project is expected to begin soon after it acquires land and will take up to two-and-half years to begin the production.
The current investment is in addition to the company's prepared investment at Cheyyar, Tamil Nadu, where it is investing $322.6m (INR18bn) to build a testing facility.
Mahindra is also planning to build a tractor facility in Andhra Pradesh, which was earlier planned to be built at Cheyyar.
