The first new car manufacturer in 25 years in Detroit officially announced last week is from India. Mumbai-based Mahindra Group plans to open a 150,000-square-foot manufacturing facility on Rex Boulevard in Auburn Hills. Full details of the project will be announced on Nov 20.
North America is not new to Mahindra. The Indian group’s technical centre and North American headquarters are currently based in Troy. However, the HQ will relocate to Auburn Hills once the manufacturing plant is operational. The roughly 40,000-sq-ft Troy set-up will not be abandoned and will continue to serve as a prototyping facility for the brand.
Although, the product line-up that will manufactured in the US facility hasn’t been officially announced yet, however reports from India suggest that SUVs will take top priority.
It’s no secret that the Indian automaker has long wanted to enter the US auto market. While Mahindra has already a large distributor network for tractors and information technology services in that country, but does not have a passenger vehicle in the market. Mahindra’s plans to open a factory in southeast Michigan were first hinted at last week when secretary of state Rex Tillerson said the automaker would build the “first-ever Indian automotive manufacturing plant in the US.” Mahindra Group arrived in Michigan in 2013 after it invested $4mn to open a technical centre and North American headquarters in Troy. Besides that, it has an assembly plant to build GenZe electric bicycles and scooters in Ann Arbor.