Mahindra & Mahindra (M&M) will finalise the location for its proposed greenfield manufacturing plant within the next six months, a senior company executive told a local daily.

The decision is part of the company's plans to expand its utility vehicle (UV) capacity 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, stated. He added that the company is evaluating multiple land parcels across different states and is not limiting its search to a single location.

Jejurikar noted that the company is open to establishing the greenfield unit outside its current manufacturing clusters. Improvements in road infrastructure and logistics have reduced the need for proximity to existing plants, he explained, emphasising that rail connectivity remains a key consideration for outbound vehicle movement.

The capacity expansion follows a period of volume growth for Mahindra, during which it moved from fourth to second position in the domestic passenger vehicle market, surpassing Hyundai Motor India and Tata Motors. Demand was driven by its SUV portfolio and new electric vehicle launches.

The proposed facility forms part of a three-pronged capacity strategy. The first involves extracting incremental volumes from existing plants through debottlenecking. The second entails the creation of new capacity at Chakan to support an upcoming vehicle platform unveiled on 15 August. The third element is the new greenfield plant, which will cater to medium- and long-term demand.

Mahindra has previously outlined plans to increase monthly vehicle production by the end of FY26. Capacity additions include higher output for existing models such as the XUV 3XO and Thar ROXX, as well as additional capacity at Chakan for the new platform.

The recently launched XUV 7XO, a facelift of the XUV700, is expected to increase volumes. The company estimates that sales of the model could rise by approximately 30%.

Mahindra has a planned launch pipeline, targeting seven ICE SUVs, including two mid-cycle enhancements, and five battery electric vehicles (BEVs), according to a senior analyst at a market research firm in a recent research report.

The report stated that, driven by new launches, Mahindra is projected to post a 14% volume CAGR in UVs over FY25-28E. The brokerage forecasts a 12% year-on-year increase in FY26-27, rising further in FY27-28.

Beyond FY26, Mahindra plans to introduce several new products built on next-generation, multi-energy platforms, which will further increase capacity requirements.

Jejurikar emphasised that the company remains focused on profitable scaling. "The objective is to grow market share while maintaining margins. Volume growth without returns is not sustainable," he stated.

The new greenfield plant is expected to support Mahindra's production and product roadmap in the coming years.