Mahindra is finally gathering steam to start production of a upcoming MPV, codenamed U321, which will give the company to take on manufacturers like the Toyota Innova Crysta and the Tata Hexa. Mahindra has recently invested Rs One,500 crore in its features in Nashik and Igatpuri, when using the major chunk gonna Nashik where the U321 will be created. The remaining part travels to the Igatpuri plant to enhance the company’s?powerplant assembly operations.
This expense has led to this Nashik plant being given Ultra Mega Job (UMP) status by the federal of Maharashtra. The position allows the company to get tax on revenues and?then reclaim the VAT paid for at the end of the year, good results that will probably allow for an even more competitive charges of products. However, as soon as the GST is put in place then of course there could be changes that may be unattainable to predict at this point with time.
The granting of this position will also lead to a massive boost in employment ability creation in the region since the norms of the UMP status require the beneficiary to produce job openings for about 3,000 people.