Mahindra is gearing up to ramp up its production significantly. This is part of its broader plan to take the annual production capacity to around 1 million units by the end of this decade. It will intensify its focus on SUVs and electric vehicles. This production expansion is aimed at supporting upcoming product launches- the NU_IQ-based range to be precise.
In the near term, the strategy is centred around expanding output using existing facilities. Mahindra is also building a new manufacturing facility at Nagpur, which is scheduled to go operational by the calendar year 2028.
For now, the carmaker is increasing its monthly production capacity through operational improvements. At the close of (financial year) FY2026, Mahindra’s total capacity stood at 64,500 units per month. These included 56,500 units of internal combustion engine (ICE) vehicles and 8000 electric vehicles.
The company is working towards taking this to 68,000 units per month, by the first half of FY2027. Mahindra will then focus more aggressively on expansion, and will take the monthly capacity to around 82,000 units by the end of FY2027. This will be done through optimisation and de-bottlenecking of current facilities.
Further expansion will happen by the end of FY2027. This additional capacity will be allotted specifically for the upcoming models. The company plans to launch several new ICE SUVs underpinned by its newly-developed NU_IQ platform in the future. The additional capacity will include 10,000 units of ICE models and 4000 of EVs. The ‘new products’ are expected to be out by FY2028.
Mahindra seems to have a fresh approach to scaling production this time. It is creating capacity in advance to reduce supply constraints in the future. Considering how almost every other (recent) product from this Indian carmaker has been rapidly rising to acceptance, this strategy makes a lot of sense. It will help in reducing waiting periods of upcoming products and in improving delivery timelines. Strong initial response to new launches will not then overwhelm the manufacturer and delay deliveries.
It has also announced a new greenfield project near Nagpurand plans to invest Rs 15,000 crores in it over the next decade. When taken operational, it will become Mahindra’s largest plant yet. It will have an annual production capacity of over 5 lakh vehicles and 1 lakh tractors. It will also be able to produce vehicles with diverse powertrain options- ICE, EVs and other next-generation platforms. This plant will cater to both domestic and export markets.
Mahindra announced its upcoming NU_IQ SUV platform in August last year. This is a monocoque platform and is said to be quite versatile. It will be able to support several vehicle sizes, and forms. It will also support both ICE and EV powertrains, and can accommodate both Left Hand Drive (LHD) and Right Hand Drive (RHD) options. Front Wheel Drive and All Wheel Drive are also supported.
Alongside the new platform, Mahindra had also showcased four interesting concepts– Vision S, Vision T, Vision SXT and Vision X. A C2 segment SUV will be the first to arrive. The Vision S will spawn an SUV that will be bulky, boxy. The proportions and design of the prototype suggest off-road readiness.
Vision T is essentially an evolution of the Thar.E concept and will likely spawn a member of the Thar family. It is based on the design philosophy that Mahindra calls ‘Born iconic’. It has a butch stance, boxy design, flared wheel arches and a tailgate-mounted spare wheel. We expect the production form to stay loyal to the prototype.
Vision SXT will spawn both EV and ICE products. It is also based on the ‘Born Iconic’ design language and has a lot of visual appeal. The production model is also expected to join the Thar family.
The Vision X will spawn a sub-four metre SUV that will compete with the likes of Maruti Brezza, Kia Sonet, Hyundai Venue and more. The design is interesting with sleek headlamps, flush-type door handles, clean lines and smooth surfaces.
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