Combined capacity to exceed million units by 2028; greenfield project in pipeline
15 Aug 2025 | 9109 Views | By Darshan Nakhwa and Ketan Thakkar
Mahindra & Mahindra (M&M) is planning a major capacity expansion as it aims to strengthen its position in the SUV segment and prepare for growth driven by electrification.
The company will add 2.4 lakh units of annual capacity at its Chakan facility, dedicated to the New Flexible Architecture (NFA), ...
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Mahindra & Mahindra (M&M) is planning a major capacity expansion as it aims to strengthen its position in the SUV segment and prepare for growth driven by electrification.
The company will add 2.4 lakh units of annual capacity at its Chakan facility, dedicated to the New Flexible Architecture (NFA), branded NU_IQ, which will underpin its next-generation SUVs. This brownfield expansion will raise Chakan’s total output to about 7.5–7.6 lakh units per annum, with some commercial vehicle production being shifted to other plants.
Alongside Chakan, Mahindra’s Nashik plant already contributes 2.5-3 lakh units annually, giving the company a strong second pillar of vehicle production.
To relieve pressure on this hub, the company has expressed interest in acquiring a land parcel near Igatpuri, which currently houses its engine and powertrain facility. While not a vehicle assembly site, the land is being considered as a “filler” to support the broader Nashik-Igatpuri ecosystem.
“We have submitted a letter of expression of interest to the Maharashtra government,” said Rajesh Jejurikar, Executive Director, Mahindra & Mahindra, while clarifying that the move is still preliminary and subject to due diligence and approvals.
The third leg of the plan is a new greenfield facility, expected to add another 2.5–5 lakh units annually over time. Taken together, Mahindra’s total passenger vehicle capacity is projected to cross 1 million units by 2028, led by Chakan and Nashik, with the greenfield plant providing additional headroom of 2.5-5 lakh units in the next phase. The final decision on the plant is yet to be firmed up.
The expansion is part of a ₹27,000-crore investment programme, with ₹12,000 crore earmarked for EVs, ₹8,000 crore for ICE vehicles, and the balance for commercial vehicles and sustenance. Management emphasised that NU_IQ has been designed with fungibility between ICE and EV platforms, enabling flexible allocation for both domestic and export markets.
“The beauty of the architecture is the fungibility it brings in. We don’t have to earmark capacity either for global or domestic, or ICE versus EV. As global builds up, it will be phased and calibrated,” Jejurikar explained.
M&M’s aggressive capacity build-up is aligned with its financial trajectory. The company outpaced the overall market last year with 20% growth and is targeting mid-teen growth in FY26, even as the industry moderates.
By focusing on higher-value SUVs and expanding its EV footprint globally — with EV-first launches in the UK and South Africa from 2027 — Mahindra is positioning itself not only as India’s most profitable SUV brand, but also to test global markets more seriously.
With production spread across Chakan, Nashik–Igatpuri, and the upcoming greenfield plant, Mahindra is building the scale and flexibility required to sustain its momentum. The roadmap underscores a dual ambition: defend its “core SUV” stronghold in India while laying the foundation to emerge as a revenue leader in the SUV business, both domestically and internationally.