Mahindra & Mahindra Ltd. denied reports of seeking government approval to invest $3 billion with China's Shaanxi Automobile Group to set up an integrated car manufacturing facility in Gujarat.
News agency Reuters reported the joint venture proposal includes building an export-orientated, integrated manufacturing hub for assembled cars as well as engines and car batteries, quoting sources. A majority stake in the proposed manufacturing venture will be owned by the Indian auto major, the report said.
"As there has been some unnecessary speculation raised by Reuter's article, the company, on its own, considers it necessary to clarify to the stock exchanges that the article is unfounded and there is no truth in the matter," the company said in an exchange filing on Friday.
Since 2020, Indian government approval has been required for any Chinese investment in the country. Investment policies for countries sharing land borders with India were tweaked after the Galwan clashes between Indian and Chinese forces in eastern Ladakh.
Shares of M&M ended 2.46% higher at Rs 2748.45 apiece before the clarification, compared to a 1% advance in the benchmark BSE Sensex.
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