Mahindra Ramps Up EV Capacity to 8,000/Month as It Eyes 3X Penetration by 2028

Mahindra & Mahindra plans to raise its electric vehicle operating capacity from the current 5,000 units a month to 8,000 units a month by March 2026, following the addition of the new XEV 9S to its line-up. The company is currently producing 4,000–5,000 units a month.

Rajesh Jejurikar, Executive Director, Mahindra & Mahindra, said capacity expansion is being aligned with projected demand and ecosystem readiness.

"We will keep operating capacity at about 8,000 a month by March," Jejurikar said. "Our focus is to make sure the supply chain, vendor ecosystem, and workforce are prepared to run consistently at that level."

He added that Mahindra is building flexibility into its production planning to support the EV portfolio as it scales. "We have to be able to handle volume swings with some lead time. That is fundamental to how we are planning the next phase," he said.

Installed Capacity vs Operating Capacity

Mahindra's installed capacity stands at about 120,000 units annually, but Jejurikar said the company intentionally operates below its full capacity to ensure sustainable throughput.

"There is a distinction between what the infrastructure can support and what you want to run daily," he said. "Installed capacity gives you the window. Operating capacity reflects what the supply chain and manufacturing teams can reliably deliver."

The company will lift operating capacity to 8,000 units a month, or roughly 96,000 units annually, by the end of FY26.

EV Penetration Target Raised to 20–25% by 2028

Mahindra expects EVs to contribute 20–25% of its SUV volumes by end-2028—almost three times higher than the current penetration of around 8%.

"With models like the XEV 9S coming in, we see a clear pathway to EV penetration of 20–25% by 2028," Jejurikar said. "The demand indicators and real-world usage patterns are giving us confidence to plan for that scale."

EV Usage Trends Reinforcing Confidence

Mahindra's internal telematics data reflects a strong behavioural shift among EV owners. Jejurikar said these trends are influencing product planning and volume forecasts.

"We are seeing meaningful long-distance usage," he said. "Nearly 30% of our EV owners have driven over 400 km in a single day. And over 60% are getting more than 500 km of real-world range."

He added that repeated long-distance journeys from early adopters are shaping broader market sentiment. "The 500-km story is playing out exactly as we expected. It's building word-of-mouth and increasing confidence in EVs," he said.

Mahindra has not disclosed how the 8,000-unit monthly capacity will be distributed across models. "The mix will depend on demand," Jejurikar said. "We will communicate model-wise details closer to the time, once we get into higher operating levels."