Mahindra to Ramp Monthly SUV Capacity by 14,000 Units in FY27

As part of a broader plan to scale up capacity to around 1 million units annually by the end of the decade, Mahindra & Mahindra is stepping up near-term production capacity while preparing for the next wave of product launches.

The company will increase its monthly production capacity to about 82,000 units in FY27, up from 64,500 units at the end of FY26, according to M&M’s  Executive Director & CEO for Auto and Farm Sector Rajesh Jejurikar said. The near-term increase in capacity is being done through optimising existing facilities rather than greenfield expansion. 

“Exiting FY26, we are at 56,000 ICE capacity and an operationalized EV capacity of 8,000 units, making it a total of 64,500. By the end of this first half of this year, we will increase ICE capacity to 60,000 units, EVs will stay where it was, with a total operational capacity of 68,000 units. And as we exit the current financial year, we will add 10,000 units ICE capacity for new models and 4,000 units for EVs, which takes it to 68,000 units plus 14,00 units for new launches in FY28,” he said.

The ramp-up comes on the back of burgeoning SUV demand, where Mahindra continues to hold the top position with over 25% revenue market share, and is targeting mid-to-high teens growth going forward.

The company is preparing for the next phase of growth by adding 14,000 units of monthly capacity, which will be deployed alongside new product introductions. The move reflects a more structured approach to capacity planning, where Mahindra is creating capacity ahead of launches, rather than rushing to ramp up the capacity after products are introduced. This would help the company avoid dealer supply constraints. The supply of certain models were impacted certain in the past, where volumes were affected due to supply limitations in Q4.

Mahindra has already ramped up EV capacity to 8,000 units per month, with further additions planned as new electric SUVs are introduced. The upcoming capacity is also aligned with new platforms and architectures, including future-ready products that will be rolled out from FY28 onwards.

Beyond enhancing capacity at existing facilities, Mahindra is investing in a new NU_IQ-based greenfield plant in Nagpur, which will come on stream from calendar 2028 onwards. “Greenfield plant is announced in Nagpur for CY28 and beyond,” Jejurikar said. The facility will be scaled up over time to around 5 lakh units annually, supporting the company’s next phase of growth and new product platforms.

The approach underscores a shift towards demand-linked, phased expansion, as the company looks to grow volumes while maintaining flexibility in a volatile environment.

With a strong product pipeline, rising EV sales and continued momentum in SUVs, Mahindra is positioning itself for sustained growth over the next few years, backed by a calibrated build-up in capacity.