Contrary to rumours, Mahindra has no plans to restructure its auto business into three separate entities.
Last week, there were rumours suggesting that Mahindra was planning to restructure its auto business into three separate entities. However, the company has now denied all the claims made in the report and has confirmed that it has no restructuring plans.
“The company considers it necessary to clarify to the stock exchanges that there are no plans to split the auto business of the company into three units,” the carmaker said in a filing to the exchanges.
Earlier, a report published by the Economic Times had claimed that Mahindra was in the process of a demerger. It also stated that the company was planning to merge its EV business and the manufacturing plant in Pune with Italian design house Automobili Pininfarina.
The report went on to state that Mahindra’s farm equipment and tractor division would become a separate entity, while the passenger vehicle business will exist as a standalone entity.
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