Mahindra & Shaanxi's $3 Billion Venture: A New Era for Indian Car Manufacturing

Indian automaker Mahindra & Mahindra and China's Shaanxi Automobile Group plan a $3 billion car manufacturing plant in Gujarat, pending government approval. The venture, controlled by Mahindra, aims to export completely built-up units, engines, and car batteries. The collaboration reflects India's shifting stance on Chinese investment.

Indian automaker Mahindra & Mahindra and China's Shaanxi Automobile Group have announced plans to establish a $3 billion joint venture aimed at building a cutting-edge car manufacturing plant in India. The proposal is currently awaiting approval from New Delhi, according to sources close to the matter.

The majority stake in this ambitious venture will be held by Mahindra, with the plant slated for construction in Gujarat, the home state of Prime Minister Narendra Modi. The project aims to create an export-oriented manufacturing hub that will produce assembled cars, engines, and car batteries.

Seeking government approval, Mahindra has highlighted the venture's potential to bolster India's automotive export capabilities. This comes as India's regulatory stance on Chinese investments is under review, driven by recent signals from top government officials advocating for increased foreign direct investment to help boost the nation's export economy.

(With inputs from agencies.)