Mahindra is stepping up its production capacity as part of a broader plan to scale output to around 1 million units annually by the end of the decade. In the near term, the company is expanding capacity across existing facilities to support upcoming product launches and sustained SUV demand.
The homegrown automaker’s monthly production capacity is set to rise from 64,500 units at the end of FY2026 to about 82,000 units by the end of FY2027. This increase is being achieved primarily through optimisation and debottlenecking of plants rather than greenfield expansion.
By H1 FY27, ICE capacity will rise by 3,500 units to 60,000 units; no change for EVs
Of the remaining 14,000-unit addition, 4,000 units will be for EVs
Expansion aligned with future models based on the NU_IQ platform
Capacity ramp-up through FY27
At the end of FY2026, Mahindra’s operational capacity stood at 64,500 units per month, comprising 56,500 units of internal combustion engine (ICE) vehicles and 8,000 EVs.
By the first half of FY2027, ICE capacity is expected to increase to 60,000 units, while EV capacity will remain unchanged at 8,000 units, taking total operational capacity to 68,000 units per month.
Further expansion is planned by the end of FY2027, with additional capacity being created specifically for upcoming models, including those based on the new NU_IQ monocoque platform. “As we exit the current financial year, we will add 10,000 units of ICE capacity for new models and 4,000 units for EVs,” said Rajesh Jejurikar, executive director and CEO (Auto and Farm Sector), Mahindra & Mahindra.
This additional 14,000-unit capacity is being built ahead of new product introductions scheduled from FY2028 onwards. The approach marks a shift towards creating capacity in advance, aimed at reducing supply constraints that have affected volumes in the past.
Nagpur plant scheduled to begin production from 2028
Beyond optimising existing facilities, Mahindra has announced a new greenfield manufacturing plant, scheduled to begin production in 2028. “Greenfield plant is announced in Nagpur for CY28 and beyond,” said Jejurikar.
Mahindra plans to invest Rs 15,000 crore over the next decade in the project, which will be its largest integrated manufacturing facility. The plant will have an annual capacity of over 5 lakh vehicles and 1 lakh tractors, and it will support production across multiple powertrains, including ICE, EVs and next-generation platforms for both domestic and export markets.
