Mahindra signs MoU with Government of Maharashtra to invest an

MUMBAI, March 31, 2008: Mahindra & Mahindra, the leading Indian
multinational, reputed for its association with the Indian automotive
industry for 62 years, today signed a Memorandum of Understanding (MoU)
with the Government of Maharashtra to further boost their investment at
its upcoming Chakan Greenfield project. The company will invest an
additional Rs. 1500 crore to the already earmarked Rs. 2500 crore. The
total sum of Rs. 4000 crore will be utilized towards the development and
production of all vehicles slated to be rolled out from the proposed
Greenfield.

M&M's Greenfield at Chakan will house the manufacture of medium and
heavy commercial vehicles, to be produced by joint venture company
Mahindra International and other products slated to hit both the
domestic & global markets at strategic timelines.

A memorandum of understanding to this effect was signed today by Mr. V K
Jairath, Principal Secretary (Industries), Government of Maharashtra and
Dr. Pawan  Goenka - President Automotive Sector, M&M in the presence of
Mr. Vilasrao Deshmukh, Honourable Chief Minister, Government of
Maharashtra, Mr. Keshub Mahindra Mahindra Group Chairman, Minister of
Industry, Mr. Ashok Chavan, Mr. Johnny Joseph, Chief Secretary, and
other dignitaries.

Shri. Vilasrao Deshmukh, Hon. Chief Minister of Maharashtra, said "I am
extremely pleased to announce that the state is taking its enduring
relationship with Mahindra & Mahindra forward with this world class
facility. It is one more step in the development of Maharashtra as
India's prime automotive hub."

Reiterating the state's commitment to the automotive industry, Mr. Ashok
Chavan said, "Maharashtra has always been at the forefront in industrial
development and have provided superior infrastructure to companies
especially in the automotive sector.  We extend that promise to Mahindra
and ITEC's maiden foray into the commercial truck segment while assuring
the project government's full support."

Mr. Keshub Mahindra, Chairman of the Mahindra Group, said "M&M's new
investment at the upcoming Chakan facility, besides contributing to the
state's economic growth will also produce jobs for the locals in that
region. We have always been at the forefront to add value to the Indian
automobile industry. This project is in keeping with this tradition of
mutual growth."

Dr. Pawan Goenka, President, Automotive Sector - M&M said, "We are very
pleased to expand our activity in the State of Maharashtra. We had
decided to make the state the launch pad for our commercial vehicles.
The additional investment plan of Rs 1500 crores, will allow us to
create a worldclass manufacturing facility for 300,000 vehicles.  The
Chakan Greenfield is a significant step for us to contribute to the
Indian automobile industry.

Mr. Johnny Joseph said, "We welcome Mahindra's initiative of adding more
value to the investment at their proposed Chakan Greenfield facility.
The additional investment of Rs. 1500 crore reiterates the fact that
Maharashtra does not cease to be the favourite investment destination
for leading automobile manufacturers like Mahindra & Mahindra."

Mr. Jairath said, "Mahindra's additional investment is not only a boost
to the economy of the state but also a fillip to Maharashtra as the
sought region for strategic automotive forays. I welcome this move and
assure complete assistance on behalf of the Government of Maharashtra."

About the Mahindra Group

The US $6 billion Mahindra Group is among the top 10 industrial houses
in India. Mahindra & Mahindra is the only Indian company among the top
three tractor manufacturers in the world. Mahindra's Farm Equipment
Sector has recently won the Japan Quality Medal, the only tractor
company worldwide to be bestowed this honour. It also holds the
distinction of being the only tractor company worldwide to win the
Deming Prize. Mahindra is the market leader in multi-utility vehicles in
India. It made a milestone entry into the passenger car segment with the
Logan.

The Group has a leading presence in key sectors of the Indian economy,
including the financial services (Mahindra & Mahindra Financial Services
Ltd, Mahindra Insurance Brokers Ltd., Mahindra Rural Housing Ltd.),
trade and logistics (Mahindra Intertrade Ltd., Mahindra Steel Service
Ltd., Mahindra Middle east Electrical Steel Service Centre FZE, Mahindra
Logistics) automotive components (Mahindra Forging, Mahindra Steel
Products, Mahindra Composites), information technology (Tech Mahindra,
Bristlecone), and infrastructure development (Mahindra Lifespaces,
Mahindra Holidays & Resorts India Ltd., Mahindra World City).

With over 62 years of manufacturing experience, the Mahindra Group has
built a strong base in technology, engineering, marketing and
distribution which are key to its evolution as a customer-centric
organization. The Group employs over 50,000 people and has several
state-of-the-art facilities in India and overseas.

The Mahindra Group has ambitious global aspirations and has a presence
on five continents. Mahindra products are today available on every
continent except Antarctica. M&M has one tractor manufacturing plant in
China, three assembly plants in the United States and one at Brisbane,
Australia. It has made strategic acquisitions across the globe including
Stokes Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co
GmbH (Germany). Its global subsidiaries include Mahindra Europe Srl.
based in Italy, Mahindra USA Inc. and Mahindra South Africa.

M&M has entered into partnerships with international companies like
Renault SA, France, and International Truck and Engine Corporation, USA.
Forbes has ranked the Mahindra Group in its Top 200 list of the World's
Most Reputable Companies and in the Top 10 list of Most Reputable Indian
companies. Mahindra has recently been honoured with the Bombay Chamber
Good Corporate Citizen Award for 2006-07.

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