Expecting a huge rise in the demand for tractors in the domestic market, Mahindra & Mahindra (M&M), India's largest tractor maker has recently said that the company is planning to scale up its production capacity by over 60% in two years.

It has been learned that the company is planning to set up a 1 lakh unit plant in the Indian market which will attract an investment of close to Rs. 600 crore.

It is to be mentioned here that the company sells Mahindra and Swaraj brands of tractors in the Indian market.

While the company has said that the new plant may come up in Tamil Nadu, it also mentioned that the expansion will take place in two phases. It may be noted here that the company produces one lakh units of the Mahindra brand a year at Rudrapur, Kandivli, Nagpur and Jaipur plants and 60,000 units of Swaraj at its Mohali unit.

Pawan Goenka, president, automotive and farm-equipment sector said that the company is seriously weighing options of capacity expansion but refrained from commenting on the amount to be invested for the expansion plan.