Mahindra & Mahindra (M&M), India’s top SUV maker by revenue, is planning to achieve an ambitious production target of one million vehicles annually by 2030. To meet this goal, the company is actively searching for land in Maharashtra to establish a new manufacturing facility, sources have revealed.
The proposed factory will be home to M&M’s new multi-energy platform, the New Flexible Architecture (NFA). This platform is expected to produce a wide range of models, contributing significantly to the company’s future growth.
Currently, Mahindra’s plants in Chakan, Pune, and Nashik have a combined annual capacity of about 8 lakh units, which includes the production of popular models such as the Bolero, Scorpio, Thar, and XUV. However, the upcoming NFA platform will require additional production space.
The NFA is expected to generate an output of 3 lakh to 5 lakh vehicles annually, which would exceed the capacity of M&M’s existing facilities. As a result, the company is exploring options to acquire land near its current Chakan plant, as well as in locations like Shirur and Ahmednagar, to remain within Maharashtra’s automotive hub and minimize logistical costs.
Mahindra has rapidly increased its manufacturing capacity from 30,000 units per month in 2022 to 49,000 units per month currently, and aims to hit 64,000 units per month by the end of this fiscal year. The goal is to further boost production to 72,000 units per month by FY26, taking the total capacity to 8.64 lakh units annually.
A portion of this expanded capacity will support M&M’s growing electric vehicle (EV) lineup, which is based on the new Inglo platform. The company’s Chakan plant will also accommodate its small commercial vehicle, the Urban Prosperity Platform, with a projected annual capacity of 1.2 lakh units.
M&M has been exploring various growth avenues, including potential acquisitions. While the company had expressed interest in acquiring General Motors’ Talegaon plant, the facility was eventually purchased by Hyundai Motor India.
However, Mahindra is still pursuing opportunities, including a possible collaboration with Skoda Auto Volkswagen, which could allow M&M to utilize the European automaker’s Chakan facility. The company has experienced a strong recovery since the pandemic, consistently outperforming market expectations.
With new model launches such as the Thar Roxx and 3XO, M&M anticipates mid-to-high teens growth, potentially surpassing the half-million sales mark for the first time this year. By FY25, M&M’s SUV turnover is projected to exceed ₹75,000 crore, with the company’s market share expected to hit double digits.
In FY24, Mahindra ranked as the second-largest SUV maker in terms of volume and number one in revenue market share, selling 4.59 lakh units. Mahindra’s long-term growth strategy includes the introduction of nine new internal combustion engine (ICE) vehicles and seven electric vehicles by 2030.
The company has committed over ₹27,000 crore for new product development and increased capacity, although it remains unclear if this includes funding for the planned new facility. With its solid track record and robust pipeline of upcoming models, Mahindra appears well-positioned to sustain its growth in the competitive automotive market, even as demand softens globally.
