Mumbai-based auto giant Mahindra & Mahindra is seeing a significant upswing in its automotive business.
In fact, the company has revised its cash deployment plans and sees an additional $1,600 billion in provision. In addition, the company announced a $500 billion increase in its auto and agriculture businesses.
With this MahindraCapital expenditure has increased to Rs.15,900 crore from previously announced Rs.15,075 crore. The move to the automotive segment will mainly serve to improve the capacity to meet customer demand and meet regulatory requirements.
In the field of electric vehicles, this will go in the direction of product development.
Recently, Minister for Roads and Motorways (MoRTH), Nitin Gadkari, called on automotive industry stakeholders to start work on the BS7 (Euro 7 equivalent) emissions standard. It is important to note that currently no country in the world has issued the technical specifications that define this.
When asked about plans for BS7 emission standards, Rajesh Jejurikar, Executive Director – Auto & Farms Sector, Mahindra & Mahindra, replied that there are currently no technical specifications and regulations communicated by the government and therefore work on them has not started yet. In addition to the electrification strategy, the company will continue to focus on expanding its range of combustion engines.
However, no significant investments are currently planned for BS7 and any capital expenditure will only be decided once the roadmap is clear.