Mahindra & Mahindra (M&M) has laid out one of its most aggressive manufacturing expansion roadmaps yet, with plans to double its monthly vehicle production capacity between FY26 and FY31 as it prepares for a wave of new SUV and electric vehicle launches, said Rajesh Jejurikar, Executive Director & CEO, Auto & Farm Sector at M&M at the company's earnings press conference.
"We are on track to hit all our near-term manufacturing milestones while simultaneously investing in future capacity across multiple plants. We had said that we will be at 60,000 per month exit at the end of September this year. We are on track for that," he said.
M&M posted a 7% year-on-year increase in standalone net profit to Rs 3,685 crore for the quarter ended June 30, compared with Rs 3,450 crore a year earlier. Revenue from its automotive business rose 24.4% to Rs 31,033 crore, while the farm equipment segment recorded a 19.2% increase to Rs 10,947 crore. The company's momentum was driven by healthy volume growth across businesses. Automotive sales rose 23% year-on-year to 304,421 units, while tractor volumes increased 18% to 158,041 units. Utility vehicle sales, the company's biggest profit driver, climbed 15% to 175,000 units during the quarter.
Mahindra's immediate focus remains on scaling SUV production while simultaneously expanding electric SUV manufacturing. As per the company's capacity roadmap, it is progressively debottlenecking existing plants, adding new production lines and preparing greenfield capacity for the next phase of growth.
For its core internal combustion engine (ICE) SUV business, Mahindra plans to increase monthly production capacity from 54,000 units at the end of FY25 to 56,500 units by the end of FY26. Capacity will then rise to 60,000 units per month by the first half of FY27. In the second half of FY27, SUV capacity will increase further to 70,000 units per month with 10,000 units of this additional capacity earmarked for new product launches planned during FY28. This indicates that Mahindra expects sustained demand for its SUV portfolio while also reserving production headroom for upcoming models.
On the electric vehicle side, Mahindra's battery electric vehicle (BEV) capacity is also being scaled gradually. Operational capacity is expected to rise from 5,000 units per month at the end of FY25 to 8,000 units by FY26, with the same level maintained through the first half of FY27. By the second half of FY27, BEV capacity will double to 16,000 units per month, including 8,000 units dedicated to new launches in FY28.
Combined, Mahindra's total monthly vehicle production capacity will grow from 59,000 units at the end of FY25 to 64,500 units by FY26, 68,000 units in the first half of FY27 and 82,000 units by the second half of FY27. Of this, 14,000 units of incremental capacity will support new launches in FY28, highlighting that a significant portion of the expansion is intended for future products rather than existing models.
Beyond FY27, Mahindra has already outlined the next phase of expansion. "We will create an additional 10,000 units of monthly capacity for the NU_IQ platform at its Chakan plant, translating into 92,000 units of annual operational capacity. Our greenfield manufacturing facility in Nagpur will support launches planned from FY29 onwards," Jejurikar adds. The Nagpur plant is expected to add 20,000 units per month by the first half of FY30, with another 20,000 units per month coming to be added by the end of FY31. Overall, Mahindra expects to double its manufacturing capacity between the end of FY26 and the end of FY31, according to Jejurikar.
The parallel expansion of ICE and BEV capacity also reflects Mahindra's multi-powertrain strategy, continuing to capitalize on the strong profitability of SUVs while steadily preparing for higher EV penetration over the coming years.
"At this time, we are not giving out an exact number for capex, but it will be a sizable investment. Not all the capex is from Nagpur, some is from Chakan expansion and are already into the current capex," he adds.
With SUV demand remaining robust and Mahindra preparing multiple ICE, NU_IQ platform and electric launches over the next few years, the company is steadily building manufacturing muscle well ahead of product introductions.