NEW DELHI: Home-grown auto-major Mahindra & Mahindra denied a report that suggested the Mumbai-based group was seeking the government approval to invest $3 billion with China’s Shaanxi Automobile Group.
It said that the report is unfounded and there is no truth in the matter. “As there has been some unnecessary speculation raised by the Reuters’ article, the company on its own considers it necessary to clarify to the stock exchanges that the article is unfounded and there is no truth in the matter,” M&M said in a regulatory filing.
A report by Reuters had said that Mahindra’s JV with Shaanxi could result in setting up of an integrated car manufacturing facility in Gujarat. At present, JSW Group’s MG Motor, which has China’s SAIC stake, has a manufacturing unit in Gujarat. The report stated that the two companies were awaiting Indian government’s approval and, if approved, a majority stake in the proposed manufacturing venture would be owned by Mahindra.
The proposal included building an export-oriented, integrated manufacturing hub for assembled cars - known as completely built-up units - as well as engines and car batteries, the report quoting sources said. Meanwhile, Mahindra has confirmed the debut of the Thar Roxx on August 15.