Mahindra to Spend $2.5 Billion on Capacity, Products

India’s Mahindra & Mahindra Ltd. says it will hike spending 20% to 180 billion rupees ($2.5 billion) through 2022 to expand production, develop new models and create “greener” powertrains.

The SUV specialist will invest roughly 60 billion rupees ($859 million) on product development, including electrified powertrains and piston engines to meet India’s tougher BS-VI emission standards that take effect next April.

Mahindra also will spend 50 billion rupees ($720 million) to add a new press line, paint shop and chassis trim line at its giant plant in Chakan. The project will hike the factory’s annual capacity to 750,000 cars, minivans, SUV/crossover vehicles and commercial trucks.

The Chakan facility is being readied for the 2020 launch of a new midsize SUV to replace its XUV500. A variant for Ford Motor Co. will debut in 2021. The plant also will add the all-new Scorpio SUV and its Thar off-road variant in 2020.

Mahindra’s car and truck sales in January-March grew 5% to 163,900 vehicles, including a 7% increase to 77,600 passenger vehicles.