M&M invests $7 m in developing army vehicle

Car maker Mahindra & Mahindra said on Wednesday it has invested $6-7 million in developing its new army off-roader Axe.

The company looks to sell the vehicle to Indian and sraeli Army.

"The vehicle is being tested by Israeli Army and would soon be tested by the Indian Army," M&M President (Automotive Sector) Pawan Goenka said on the sidelines of SIAM Annual Convention in New Delhi.

He said the commercial production of the vehicle will start once the company receives the order from the army.

The company is sourcing the engine for Axe from an Israeli firm and has no plans to develop its own engine for the off-roader.

"We

are not looking at the civilian version of Axe. We will continue to source the engine and as of now we have no plans to put in our own engine," Goenka added.

On the Indian automobile industry, he said growth in the second half would continue at 10-12 per cent and M&M anticipate to continue growing at about the industry average.

"M&M, in terms of sales, including Logan, has grown 37 per cent in April-August period and we hope to maintain this momentum for the remaining part of the fiscal," Goenka said.

He said the company was still two years away from its US foray.