Anish Shah, MD & Group CEO, Mahindra & Mahindra, and Rajesh Jejurikar, Executive Director, Auto and Farm Sector
Mahindra & Mahindra plans to almost double SUV production capacity from around 72,000 vehicles a month currently to about 1.32 lakh units a month by FY31, as India’s largest SUV maker accelerates investments to meet sustained demand for its expanding electric vehicle portfolio and growing export ambitions.The expansion, through debottlenecking at existing plants, an expansion at its Chakan facility and a new manufacturing plant at Nagpur, comes even as the automaker navigates elevated commodity costs that management expects to persist into the September quarter.Capacity expansion backed by strong demandConfident that demand for its SUVs and electric vehicles will remain strong over the next several years, Mahindra said it will expand monthly SUV production capacity in phases, from around 72,000 units currently to about 82,000 units through near-term debottlenecking, followed by an expansion at its Chakan facility that will lift capacity to around 92,000 units a month.A new manufacturing plant at Nagpur will then add 20,000 units a month by mid-2029, followed by another 20,000 units about a year later, taking total SUV production capacity to around 1.32 lakh units a month by FY31 — nearly double current levels.The expansion is being driven by sustained demand across Mahindra’s SUV portfolio, particularly its electric vehicles. Rajesh Jejurikar, Executive Director, Auto and Farm Sector, said waiting periods for the company’s electric SUVs continue to range between six and 12 weeks, depending on the variant, while EVs now account for around 12 per cent of Mahindra’s SUV portfolio. The company reiterated its guidance for mid-to-high-teen SUV volume growth in FY27 and said its product launch pipeline remains on track.Managing commodity headwindsThe company is pressing ahead with the investment despite elevated input costs. Group CFO Amarjyoti Barua said higher prices for aluminium, steel, copper and rubber would have reduced automotive margins by around 400-450 basis points had Mahindra not offset the impact through calibrated price increases and operational efficiencies. Aluminium prices rose as much as 22 per cent during May and June before easing, while steel and copper were up about 10 per cent each and rubber prices climbed around 30 per cent. Steel and aluminium inflation is expected to continue into the September quarter, with some impact likely extending beyond.Managing Director and Group CEO Anish Shah said Mahindra’s automotive and farm businesses successfully navigated 400-500 basis points of commodity inflation during the quarter while delivering 21 per cent growth in automotive profit, underscoring the company’s focus on protecting profitability while continuing to invest for growth.Exports to power next phase of growthMahindra expects exports to play a larger role in utilising its expanded production capacity. Jejurikar said overseas shipments have been supported by new product launches and a sizeable pickup order from Indonesia, while the company is strengthening its presence in markets such as South Africa, Australia and New Zealand. The next phase of its international strategy will include a global lifestyle pickup truck, while the company is also evaluating the introduction of its electric SUVs in developed overseas markets.No E20 impact, broader shift to CNG as charging network expandsResponding to a question from businessline, Jejurikar said Mahindra is not seeing any impact on customer demand from the rollout of E20 (20 per cent ethanol-blended petrol) and remains on schedule with its planned product launches. While there is a broader shift towards CNG vehicles across the industry, he said the trend predates the E20 transition and has not altered buying behaviour for Mahindra’s products.On electric mobility, Jejurikar said a large proportion of Mahindra’s EV customers already have access to home or workplace charging, while the company continues to expand its own fast-charging network. He added that the government’s renewed push to expand public charging infrastructure, including at airports, is expected to further support EV adoption as Mahindra broadens its electric vehicle portfolio.Published on July 31, 2026
