Mahindra & Mahindra, India’s largest utility vehicle maker, has plans to build a new plant in Southeast Asia.
The manufacturer is looking at countries like Thailand, Indonesia and Malaysia for a possible investment. The new plant, which will act as a manufacturing base for the entire Southeast Asian region, is likely to be build in the next two years and will play an important role in Mahindra’s plan to become a global player.
“SEA markets are important, big markets for M&M’s overseas growth and for expanding our global presence. We are at present in talks with various parties and evaluating the various possibilities for setting up base with appropriate business model,” Pravin Shah, Mahindra’s chief executive for international operations, automotive & farm equipment sectors, told India’s Economic Times.
“The company is exploring Indonesia, Thailand for the automotive business, and from the tractors perspective, Thailand, Malaysia and Myanmar is on the radar,” Shah added. The Southeast Asian base could build products ranging from Mahindra utility vehicles to pick-ups, Ssangyong SUVs, Mahindra tractors, along with products from Chinese tractor joint ventures Jiangling & Yeuda Tractors.
Currently, M&M exports vehicles to Malaysia and wants to expand to other markets in the region. Key ASEAN markets buy more than 700,000 utility vehicles and pickups a year and more than 50,000 tractors.