Mumbai: Auto Majors Tata Motors and Mahindra & Mahindra have lined up huge investments to spruce up their existing operations near Pune, in Maharashtra.

Tata Motors said it will be investing Rs6,000 crore over four - five years in its existing facilities in Pune to raise its capacity by 40 per cent to 6,00,000 units per annum. The Pune facility, spread over the Pimpri-Chinchwad area, is engaged in the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for development of new ranges of automobile products.

It signed a memorandum of understanding (MoU) with the Maharashtra government for the investment today.

"The facility expansion would be used for all Tata Motors vehicles," Tata Motors managing director Ravi Kant said, adding, the investment would generate 1,500 additional jobs.

While the current facility includes assembly lines for heavy commercial vehicles, medium commercial vehicles, light commercial vehicles, utility vehicles and one for passenger cars, Tata Motors plans to set up vehicle testing facilities in Pune as part of the expansion.

Reports indicate that Pune will also serve as a production centre for Tata's Rs100,000 people's car, Tata Nano.

Commenting on the MoU, Ratan Tata, chairman of Tata Sons and Tata Motors, said, ''This MoU with the government of Maharashtra is a step towards realising Tata Motors' plans to augment capacity at Pune plants to meet ever increasing customer expectations and demands both in India and abroad. It also facilitates setting up of vehicle testing facilities in Pune. Maharashtra has always been an integral part of the company's operations, and we are delighted with the support that the state government has extended to us.''

Mahindra & Mahindra (M&M) also announced an additional investment of Rs1,500 crore to double capacity at its proposed Rs2,500-crore manufacturing plant at Chakan, near Pune.
M&M today signed an MoU with the Maharashtra government to this effect.

The plant, with proposed overall investment of Rs4,000 crore, will assemble medium and heavy commercial vehicles.

In January 2008, M&M had parted ways with joint venture partners Renault and Nissan, which would have otherwise seen the company set up a Rs4,000-crore greenfield manufacturing unit at Chennai in Tamil Nadu, with an annual production capacity of 400,000 units – both cars and utility vehicles. (See: M&M pulls out of investment in Chennai plant; Renault, Nissan to proceed with greenfield project)

The greenfield facility at Chakan will manufacture medium and heavy commercial vehicles, to be produced by joint venture company Mahindra International and other products slated to hit both the domestic and global markets at strategic timelines, M&M said in a statement.

Vilasrao Deshmukh, chief minister of Maharashtra has welcomed the investment, saying "I am extremely pleased to announce that the state is taking its enduring relationship with Mahindra & Mahindra forward with this world class facility. It is one more step in the development of Maharashtra as India's prime automotive hub."

Keshub Mahindra, chairman of the Mahindra Group, said, "M&M's new investment at the upcoming Chakan facility, besides contributing to the state's economic growth will also produce jobs for the locals in that region. We have always been at the forefront to add value to the Indian automobile industry. This project is in keeping with this tradition of mutual growth."

Pawan Goenka, president, automotive sector, M&M, said, "We are very pleased to expand our activity in the State of Maharashtra. We had decided to make the state the launch pad for our commercial vehicles. The additional investment plan of Rs1500 crore, will allow us to create a world class manufacturing facility for 300,000 vehicles. The Chakan greenfield is a significant step for us to contribute to the Indian automobile industry.''