MUMBAI: Maharashtra is making a strong comeback in the automobile sector after losing out to Gujarat, Andhra Pradesh and Tamil Nadu in recent years, with companies promising fresh investments worth billions of dollars in the western state over the next five to seven years. US automobile giant General Motors has committed to invest $1 billion (Rs 6,770 crore) in new facilities.

The Mahindra and Mahindra Ltd (M&M) stock is one of those which haven’t participated in the recent breathtaking rally. Just when investors regained faith in the company’s growth prospects, a host of developments have cast a pall of gloom on the stock. Leading brokerage firms like Credit Suisse, CLSA and Nomura have downgraded the stock.

First, the excise duty exemption on its Haridwar plant expired in January, which will increase price of vehicles made there.

NEW DELHI: Mahindra & Mahindra (M&M) has firmed up plans to invest around Rs 1,000 crore in developing petrol engines over the next two to three years. The company is working on developing new petrol engines (1.5 litre and 1.6 litre) in-house and a 2.2-litre petrol engine in collaboration with Korean subsidiary SsangYong Motor Company (SMC).

Apart from joint engine development, M&M Executive Director Pawan Goenka said the company is also reviewing opportunities to share platforms with SMC.

On Monday, the United States Department of Defense (Pentagon) delivered to the defence ministry a Letter of Acceptance (LoA), agreeing to supply 145 M777 ultra lightweight howitzers to India. Valid for 180 days, the LoA spells out the contract price, terms of supply and options available.

Sources close to the sale tell Business Standard the asking price for 145 guns is about $750 million (Rs 5,000 crore). The vendor, BAE Systems, will supply the first batch of 155-millimetre, 39-calibre howitzers within six months of signing the contract. The remaining guns would progressively be built in India.

Homegrown utility vehicle major Mahindra & Mahindra plans to invest Rs 8,000 crore on its automotive plants in Maharashtra over the next seven years as part of its expansion plans.

"The company plans to make an investment of Rs 8,000 crore at the automotive plants in Maharashtra as part of its expansion plans," Mahindra & Mahindra (M&M) today said in a regulatory filing.

The country’s largest utility vehicle manufacturer, Mahindra and Mahindra on Friday missed estimates by registering a decline of 14.04% (Y-o-Y) in its net profit (standalone) during the October-December quarter at Rs 807.39 crore on the back of less than expected growth in the tractor volumes.

During the same quarter last year, the company made an exceptional gain by selling shares worth R300 crore of Mahindra Engineering Services (MESL).

SsangYong, the South Korean automobile company of Mahindra & Mahindra (M&M), plans to invest $1 billion over the next three-four years to develop new products to grow sales and turn profitable. The company has been mired in losses for the past few years.

"All the fundamentals have been put in place and now we will focus on financials. Finance was not the primary objective so far. Now it will be. The market share is improving and the brand is reviving.

Mahindra and Mahindra (M&M), which has overtaken Tata Motors in light commercial vehicles (LCVs) this year, is looking to double its market share to about 6% in the fast-growing medium and commercial vehicle (M&HCV) segment.

Eyeing more market share, the company today launched its new truck series Blazo at the Auto Expo. Claiming to offer a superior mileage, the Blazo series includes haulage, tractor trailer and tipper vehicles.

Mahindra & Mahindra today reported a 9.66 per cent increase in total sales at 43,789 vehicles in January.

The company had sold 39,930 units in January 2015, M&M said in a statement.

Sports utility vehicle market leader Mahindra & Mahindra launched a sub-2,000cc diesel engine that will allow it to sell its Scorpio and XUV500 models in Delhi and the surrounding region, a little over a month after the Supreme Court banned its sales there.

The court had banned sales of all vehicles having diesel engines more than 2,000cc till end-March 2016, on a public interest suit over rising pollution in the capital.

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