Attributing this to the economic slowdown, Goenka said Mahindra has now redefined its business plan - it has reduced its capex by 10 percent from Rs.5,000 crore to Rs.4,500 crore, apart from putting new investments on hold.

'If the volume of Logan sales picks up, then we can increase the capacity of our manufacturing plant at Nashik,' he said.

The Nashik plant in Maharashtra will also manufacture vehicles for export to the US from December, Goenka said.

It is setting up another unit at Chakan, also in Maharashtra, that is expected to start production in November.

'We will start production in early November. The first product to be rolled out would be a light commercial vehicle, followed by a truck and a sports utilitiy vehicle (SUV),' Goenka said.

The product launches are scheduled for December.