Indian automaker Mahindra & Mahindra plans to set up an assembly plant in Southeast Asia with a view to cater to the entire region and to establish itself as a global player in the automobile industry. The company, India’s largest utility vehicle maker is looking at markets in Indonesia, Thailand, and Malaysia and is in talks with potential parties for the initiative.
Mr. Pravin Shah, Chief Executive, International Operations, Automotive & Farm Equipment Sectors at Mahindra & Mahindra stated that Mahindra expects to expand its global operations and overseas growth through the establishment of the new plant. Moreover, the Asian Free Trade Agreement with low and reducing duty structure has enabled the company to avail several opportunities to venture into new markets of member countries.
In the fiscal year 2011-2012, Mahindra’s automotive exports have seen a 69 percent growth and its tractor exports have grown by 16 percent. With assembly plants in Brazil and Egypt and the upcoming assembly unit in Southeast Asia, the company plans to rely upon the export markets for 15-20 percent of its total production.
