Mahindra & Mahindra (M&M) will finalise the location for its proposed greenfield manufacturing plant within the next six months, a top company executive was quoted as saying by The Economic Times. The move comes amid the carmaker's plans to expand its UV capacity exceeding the million-unit mark in FY26-27.
"We have to close this in the next six months," Rajesh Jejurikar, executive director and CEO – Automotive and Farm Equipment Sectors at Mahindra & Mahindra, was quoted as saying, adding that the company is evaluating multiple land parcels across states and is not limiting its search to a single location.
He said the company is open to setting up the greenfield unit outside its current manufacturing clusters. Improved road infrastructure and faster logistics have reduced the need to be located near existing plants, he said, adding that rail connectivity is a key consideration for outbound vehicle movement.
Expansion Follows Market Gains
The capacity expansion follows a period of brisk volume expansion for Mahindra, during which it moved from fourth to second position in the domestic passenger vehicle market overtaking Hyundai Motor India and Tata Motors. Mahindra's registrations during the year stood at around 5.81 lakh units compared to 4.90 lakh units in 2024. Demand was driven by its SUV portfolio and new electric vehicle launches.
M&M's Strategy
The proposed facility is part of a three-pronged capacity strategy. The first involves extracting incremental volumes from existing plants through debottlenecking. The second is the creation of new capacity at Chakan to support an upcoming vehicle platform unveiled on 15th August. The third is the new greenfield plant, which will cater to medium-and long-term demand.
Production Targets and Timeline
Mahindra has earlier outlined plans to increase monthly vehicle production from 61,500 units to 85,000 units by the end of FY26, taking its annual installed capacity beyond one million units. Capacity additions include higher output for existing models such as the XUV 3XO and Thar ROXX, as well as an additional 120,000 units per annum at Chakan for the new platform.
Looking ahead, Mahindra expects the recently launched XUV 7XO -- the facelift of its flagship XUV700 -- to materially lift volumes. The company estimates that monthly sales of the model could rise by about 30 per cent, from an average of around 7,000 units to nearly 10,000 units.
Future Products
Beyond FY26, Mahindra plans to introduce several all-new products built on next-generation, multi-energy platforms, which will further add to capacity requirements.
