Mahindra & Mahindra plans to raise its monthly SUV manufacturing capacity by 27% to 82,000 units by March 2027 as strong demand stretches its factories and the company prepares for its next round of launches.
The company began FY27 with capacity for 64,500 SUVs a month and increased that to 68,000 units by the end of September. The remaining expansion this financial year is earmarked for new combustion-engine and electric SUVs scheduled for introduction in FY28.
“We are operating at full capacity or a little more than full capacity, in fact,” said Rajesh Jejurikar, executive director, Auto and Farm Sectors, Mahindra & Mahindra, at the company’s results briefing. “So our numbers are reflecting a constraint of capacity.”
Jejurikar said October SUV volumes exceeded the monthly capacity indicated for the end of September as Mahindra stepped up output to meet festive demand.
Electric SUV retail sales were close to 10,000 units in October, exceeding the stated monthly manufacturing capacity of 8,000 units. The company did not disclose dealer inventory levels or indicate how much stock remained available.
“We have seen very, very strong demand for our portfolio,” Jejurikar said.
Preparing For New Products
By March 2027, Mahindra plans to add monthly capacity for 10,000 combustion-engine SUVs and 4,000 electric vehicles. This will take capacity for the two categories to 70,000 and 12,000 units a month, respectively.
“We are on track to deliver on all the capacity expansion plans that we’ve spoken about,” Jejurikar said.
The additional capacity will support a new SUV on the NU_IQ platform and an all-new electric vehicle. These are among five launches planned for the first half of calendar 2027, alongside the Scorpio Lifestyler, a refreshed model and a new light commercial vehicle.
Mahindra reported SUV volume growth of 20% in the first half of FY27 and retained its full-year forecast of mid-to-high-teens growth.
Chakan And Nagpur Lead The Next Phase
Further expansion at Chakan will add capacity for 10,000 vehicles a month for the NU_IQ programme, taking combined monthly SUV capacity to 92,000 units by March 2028.
The next major increase will come from Mahindra’s planned greenfield factory in Nagpur, which will support new launches from FY29 onwards.
“We’ve got the parcel of land and work is starting very shortly on that,” Jejurikar said.
Nagpur is scheduled to add approximately 20,000 units of monthly capacity by the end of the first half of FY30, followed by another approximately 20,000 units by the end of the first half of FY31.
These additions will take Mahindra’s combined monthly SUV capacity to 132,000 units, more than double the 64,500-unit level at the end of FY26.
Production constraints also extend to light commercial vehicles. Monthly volumes across Mahindra’s pick-up and Supro range have reached about 30,000 units, up from around 20,000-23,000 units a few months earlier.
“Now 30,000 doesn’t seem to be enough at this point of time,” Jejurikar said.