Mahindra Plans Futuristic PV-Only Plant by FY28

Mahindra has announced plans to establish a new, state-of-the-art passenger vehicle (PV)-only manufacturing facility by FY28. While the company has yet to disclose the location of the proposed plant, it has confirmed that funding for the facility is already built into its capital expenditure roadmap. Described internally as a “futuristic” plant, the upcoming facility will cater exclusively to Mahindra’s growing portfolio of passenger vehicles, with a strong focus on both internal combustion engine (ICE) models and electric vehicles (EVs). Mahindra has also indicated that it will maintain flexibility within the new facility to accommodate further business expansion as market dynamics evolve.

Also Read: Mahindra Delivers 6300 BE 6, XEV 9e In 40 Days

The automaker plans to seek subsidies and incentives from multiple states, evaluating the most competitive offers before finalising the plant's location. The move aligns with the company’s strategy of optimising capital allocation while remaining agile in response to regional policy shifts and EV-focused industrial support schemes.

Importantly, Mahindra clarified that this expansion is not reactionary or tied to short-term sales spikes but is instead part of a long-term growth trajectory. With robust cash flows reported in FY25—including over ₹10,000 crore generated across the group—the company has the financial headroom to invest in strategic capacity without compromising ongoing operations.

Also Read: Mahindra Clocks ₹1.59 Lakh Cr Revenue in FY25, Delivers 6300 EVs Till Date

Mahindra’s decision comes on the heels of a solid FY25 performance. The company reported ₹1.59 lakh crore in consolidated revenue, marking a 14 per cent year-on-year increase, with PAT rising by 20 per cent to ₹12,929 crore. This growth was supported by strong sales across both its auto and farm segments, record-high market shares in SUVs (22.5 per cent) and tractors (43.3 per cent), and positive momentum in electric three-wheelers.

Mahindra has already introduced the BE 6 and XUV 9e electric models, and recently delivered 6,300 units of these EVs within just 40 days. The company also plans to launch five electric vehicles (EVs), seven ICE SUVs (including two facelifts), and five new light commercial vehicles (LCVs) by 2030. 

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Mahindra’s new plant plans reflect the increasing bifurcation in automotive manufacturing strategies, where legacy ICE production is complemented—but not replaced—by parallel EV investments. At the same time, Mahindra’s PV-only focus for the upcoming plant may help it streamline operations, reduce complexity, and meet its evolving technological and regulatory needs with greater precision.