Mahindra & Mahindra is drafting its stance to have a unit in Cheyyar near Chennai. The company has earmarked 550 acres of which the government of Tamilnadu has apportioned 225 acres so as to make the company procure the rest of the land. It the scheme materialises, then the unit would produce tractors and an exclusive automobile project. The allocation of land will not be a problem since the government has benchmarked the area for the automobile park with 2400 acres.

It is to be remembered that in 2007 M&M, along with Renault and Nissan, has entered into a MoU with the TN government for such a venture near Oragadam at Rs4500 crore by which it was projected to make 4 lakh units of automobiles and 50000 units of tractors. But in 2008, M&M withdrew its presence to make its own and is on the cards with another project of Mahindra Research Valley @Rs500 crore in the SEZ at Mahindra World City.

Whereas the JV between Renault and Nissan is still alive that the production might blossom this year. M&M sources claim that the proposed new location will see the production of Scorpio, utility vehicles and low tonnage vehicles.