Mahindra & Mahindra defers Rs 1K-cr capex plan amid sector slowdown

New Delhi: Owing to the slowdown in the automobile industry, Mahindra & Mahindra has deferred its planned capex of around Rs 1,000 crore by a year, which, if not reversed within this fiscal, would lead to more job losses in the sector, the company's MD Pawan Goenka said.

The company that recently underwent a plant shut-down exercise to adjust production also said that if sales do not pick up in the festive season, it may have to undertake the exercise again in October.

"At Mahindra & Mahindra (M&M), we probably will end up deferring about 10 per cent capex for auto and tractor (together)... it would come to around Rs 800-Rs 1,000 crore," Goenka said.

He was responding to a query on whether the current slowdown in the auto industry has forced the company to postpone investments.

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