Mahindra & Mahindra plans to increase its monthly SUV manufacturing capacity by 27% to 82,000 units by March 2027, as demand exceeds production capacity and the company prepares for its upcoming product launches.

The company began FY27 with a monthly capacity of 64,500 SUVs, increasing it to 68,000 units by the end of September. The remaining expansion planned for this financial year will support new internal combustion engine (ICE) and electric SUVs scheduled for FY28.

"We are operating at full capacity or a little more than full capacity, in fact. So our numbers are reflecting a constraint of capacity," said Rajesh Jejurikar, Executive Director, Auto and Farm Sectors, Mahindra & Mahindra, during the company's results briefing.

Jejurikar said October SUV volumes exceeded the monthly capacity indicated for September-end, as Mahindra increased production to meet festive-season demand. The company did not disclose dealer inventory levels or the quantity of stock remaining available.

"We have seen very, very strong demand for our portfolio," Jejurikar said.

Preparing for new products

By March 2027, Mahindra plans to add monthly manufacturing capacity for 10,000 ICE SUVs and 4,000 electric vehicles, taking the respective capacities to 70,000 and 12,000 units.

"We are on track to deliver on all the capacity expansion plans that we've spoken about," Jejurikar said.

The additional capacity will support a new SUV based on the NU_IQ platform and an all-new electric vehicle. Both are among five launches planned for the first half of calendar year 2027, alongside the Scorpio Lifestyler, a refreshed model and a new light commercial vehicle.

Mahindra reported SUV volume growth of 20% in the first half of FY27 and retained its full-year growth forecast of mid-to-high teens.

Chakan and Nagpur to support further expansion

Expansion at Chakan will add capacity for 10,000 vehicles per month for the NU_IQ programme, taking Mahindra's combined monthly SUV manufacturing capacity to 92,000 units by March 2028.

The next major expansion will come from the company's planned greenfield facility in Nagpur, which will support new launches from FY29 onwards.

"We've got the parcel of land and work is starting very shortly on that," Jejurikar said.

The Nagpur facility is scheduled to add approximately 20,000 units of monthly capacity by the end of the first half of FY30, followed by another approximately 20,000 units by the end of the first half of FY31. These additions will take Mahindra's combined monthly SUV manufacturing capacity to 132,000 units, more than double the 64,500-unit capacity recorded at the end of FY26.

Production constraints also extend to light commercial vehicles, with Mahindra's pick-up and Supro range operating at higher production levels than a few months earlier.

"Now 30,000 doesn't seem to be enough at this point of time," Jejurikar said.