Mahindra & Mahindra (M&M) has announced a major capacity expansion to reinforce its SUV leadership and prepare for future growth driven by electrification. The company will add 2.4 lakh units of annual capacity at its Chakan facility under the New Flexible Architecture (NU_IQ), which will support upcoming SUV models. With this brownfield expansion, Chakan’s total output will increase to about 7.5–7.6 lakh units per year, with some commercial vehicle production being shifted to other sites.
Alongside Chakan, the Nashik plant contributes 2.5–3 lakh units annually, making it the company’s second key production hub. To ease pressure on Nashik, M&M has expressed interest in acquiring a land parcel near Igatpuri, where its engine and powertrain plant is located. While not an assembly site, the proposed land would serve as additional support for the Nashik–Igatpuri ecosystem.
“We have submitted an expression of interest to the Maharashtra government,” said Rajesh Jejurikar, Executive Director, M&M, noting that the proposal remains at a preliminary stage pending due diligence and approvals.
A third facility is also in the pipeline — a new greenfield plant that could add 2.5–5 lakh units annually in later phases. Together, these expansions will push Mahindra’s total passenger vehicle capacity past 1 million units by FY28, led by Chakan and Nashik, with the greenfield site providing added headroom for growth.
The programme is part of Mahindra’s ₹27,000-crore investment roadmap: ₹12,000 crore for EVs, ₹8,000 crore for internal combustion vehicles, and the remainder for commercial vehicles and sustenance. The NU_IQ platform has been designed with interchangeability between ICE and EV models, offering flexibility to serve both domestic and global markets. “The architecture gives us fungibility — capacity need not be fixed by market or powertrain type. As global volumes build up, allocations will be phased and calibrated,” Jejurikar explained.
M&M has been growing faster than the industry, recording 20% growth last year and targeting mid-teen growth in FY26, even as the wider market slows. With a strong SUV portfolio and upcoming global EV launches in the UK and South Africa from 2027, the company is positioning itself to consolidate its leadership at home while testing overseas markets more aggressively.
By distributing production across Chakan, Nashik–Igatpuri, and the upcoming greenfield site, Mahindra is building the scale and flexibility needed to maintain its growth momentum. The strategy reflects a dual focus: defending its stronghold in India’s SUV market while shaping its future as a global revenue leader in the segment.
Established in 1945, the Mahindra Group is a leading global federation of companies, employing over 260,000 people across more than 100 countries. In India, it holds strong leadership positions in farm equipment, utility SUVs, information technology, and financial services, and is recognized as the world’s largest tractor manufacturer by volume. The Group also has a significant footprint in sectors such as renewable energy, agriculture, logistics, hospitality, and real estate.
Mahindra is committed to global leadership in environmental, social, and governance (ESG) practices, with a focus on promoting rural prosperity and improving urban living. Its mission is to create lasting, positive impact for communities and stakeholders, empowering them to progress and thrive.
