2026-08-01
Mahindra & Mahindra (M&M) has unveiled an ambitious manufacturing expansion strategy aimed at supporting its rapidly growing SUV and electric vehicle (EV) portfolio. The company plans to double its production capacity by FY31, while targeting 92,000 units of monthly operational capacity within the next two years through a combination of plant upgrades, new production lines and greenfield investments.
The announcement was made by Rajesh Jejurikar, Executive Director & CEO – Auto & Farm Sector, during the company's latest earnings conference.
Mahindra cars confirmed that it remains on schedule to achieve its previously announced production target of 60,000 vehicles per month by September 2026.
Speaking about the company's expansion roadmap, Rajesh Jejurikar said that Mahindra is simultaneously increasing capacity across multiple manufacturing facilities while preparing for a new generation of SUVs and electric vehicles.
The company is expanding existing plants, adding fresh production lines and investing in new facilities to meet future demand.
Mahindra's capacity expansion will also support growing demand for some of its most popular models, including the Mahindra Scorpio N, Mahindra XUV700, Mahindra Thar Roxx, Mahindra XUV 3XO, and the company's latest electric SUVs, Mahindra BE 6 and Mahindra XEV 9e. With several new ICE and EV launches planned over the next few years, the additional production capacity will help reduce waiting periods while ensuring smoother deliveries across India
Mahindra's aggressive investment plan comes on the back of a strong first-quarter financial performance.
For the quarter ended June 30, the company reported:
Sales also remained healthy across business segments:
The strong performance has reinforced Mahindra's confidence in expanding production capacity over the coming years.
Mahindra's immediate priority is expanding production of its popular internal combustion engine (ICE) SUVs.
According to the company's roadmap:
Out of this increase, 10,000 units per month have been reserved for new SUV models scheduled for launch in FY28.
Mahindra is also significantly expanding its battery electric vehicle (BEV) manufacturing capability.
The company's EV production capacity is expected to grow as follows:
Half of this expanded EV capacity will be dedicated to upcoming electric vehicle launches planned for FY28.
Combining both ICE and EV manufacturing, Mahindra's monthly production capacity will increase steadily:
The company says that 14,000 units of this additional capacity have been specifically allocated for future product launches.
Beyond FY27, Mahindra has already mapped out its next expansion phase.
The company will add another 10,000 units of monthly capacity for its upcoming NU_IQ platform at the Chakan manufacturing facility, taking operational capacity to 92,000 units.
Mahindra is also developing a new greenfield manufacturing plant in Nagpur, which will support products launching from FY29 onwards.
The Nagpur facility is expected to contribute:
These investments will help Mahindra achieve its goal of doubling total manufacturing capacity between FY26 and FY31.
Mahindra's expansion reflects its long-term strategy of strengthening both conventional SUV production and electric vehicle manufacturing simultaneously.
While the company continues to benefit from strong demand for its ICE SUV lineup, it is also preparing for higher EV adoption with increased production capacity and multiple new launches based on its upcoming NU_IQ platform.
Management also indicated that the overall capital expenditure for these projects will be substantial, covering both the Chakan expansion and the new Nagpur manufacturing facility, although a final investment figure has not yet been disclosed
