The even stronger response to the XUV500 in the second phase of bookings has encouraged M&M to contemplate raising the XUV500’s monthly production capacity to 5,000 units per month.

The increased capacity should be installed by August and will entail an additional investment of around Rs 100 crore. The initial installed capacity for the XUV500 was 3,000 units a month but with the current level of demand, that's clearly not enough. M&M received over 25,000 bookings in the second booking window for the XUV500 across 19 cities.

Mahindra is also planning a new 'low-cost' SUV which the company hopes to launch by Diwali this year.