The state is likely to get two car manufacturing units soon. Isuzu is set to invest Rs 2,000 crore, in Chittoor district, and Mahindra and Mahindra expressed its willingness to invest Rs 250 crore in Medak district to manufacture four-wheelers.
“We have requested Mahindra and Mahindra on Wednesday to start its four-wheeler manufacturing unit. The four-wheelers will be passenger carriers. We have to hold further discussions with them and Mahindra will invest Rs 250 crore,” major industries minister J Geetha Reddy said.
She added that the state would get another car manufacturing unit soon. but refused to give more details stating it was “confidential” at this point.
However, official sources said Japan’s Isuzu is ready to invest `2,000 crore in the first phase to produce luxury cars. The state government may ink a deal with Isuzu on March 15.
Geetha Reddy said 20 more ancillary units would come up at the Mahindra and Mahindra tractor manufacturing unit near Zaheerabad, which started commercial operations on Wednesday. The unit has a capacity of one lakh tractors per year, but producing 300 tractors per month now, the minister said. There are around eight ancillary units to support the tractor unit. “The state government is giving a thrust to manufacturing and automobile units,” Geetha Reddy said.
She, along with Medak district Congress leaders, called on chief minister N Kiran Kumar Reddy at the Secretariat and thanked him for the Mahindra tractor unit.