Indian automotive giant Mahindra & Mahindra has refuted claims of a proposed $3 billion investment with China’s Shaanxi Automobile Group.

What Happened: The company has dismissed media articles that suggested the two companies were seeking government approval for this massive investment to establish an integrated car manufacturing facility in Gujarat. On Friday, Mahindra & Mahindra issued a clarification to the exchanges, stating that the report has led to unnecessary speculation.

“The article is unfounded,” the company wrote in an exchange filing. The company urged all stakeholders to disregard the news and assured them that any significant business decisions would be communicated through official channels.

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The article suggested that Mahindra & Mahindra and Shaanxi Automobile Group were planning a $3 billion joint venture to set up a car manufacturing unit in India. According to the report, both companies had agreed to form a joint venture, with Mahindra & Mahindra holding the majority stake.

The proposed manufacturing unit was expected to be set up in Gujarat, aiming to establish an export-oriented, integrated manufacturing hub for assembled cars, engines, and car batteries. However, with the latest clarification from Mahindra & Mahindra, it appears that these plans are not in the pipeline.

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