Mahindra and Mahindra Production Capacity To Double By FY31

On July 30, Mahindra and Mahindra production capacity plans were announced through an investor update, highlighting the company’s strategy to double manufacturing capacity between FY26 and FY31 exit periods ending March 31, 2031. The company will increase output through debottlenecking initiatives, additional product capacity and new manufacturing infrastructure. The expansion roadmap is designed to support upcoming vehicle launches and strengthen production readiness across internal combustion engine SUVs and battery electric vehicles.

Mahindra Production Expansion Roadmap Through FY31

Mahindra and Mahindra plans to scale production capacity during FY27 by improving existing manufacturing efficiency and adding new product capacity. The upcoming greenfield facility in Nagpur will support new launches beginning FY29, with an operational capacity of 20,000 units targeted in the first half of FY30. The facility will receive another 20,000 units of additional capacity in the first half of FY31, creating further manufacturing flexibility for future vehicle programs.

The company is also developing additional NU_IQ platform capacity at its Chakan manufacturing facility, targeting 10,000 units per month. Through these initiatives, Mahindra aims to achieve an operational production capacity of 92,000 units by the FY28 exit period. This expansion will help the automaker manage rising demand, introduce new models and improve supply capability across its growing SUV portfolio.

Mahindra ICE SUV And BEV Capacity Growth

From a powertrain perspective, Mahindra has planned significant capacity growth across both ICE SUVs and battery electric vehicles. ICE SUV capacity is expected to increase from 56.5 thousand units at the FY26 exit to 60 thousand units by FY27 H1 exit and reach 70 thousand units by FY27 exit. The additional 10 thousand units will support new model launches scheduled for FY28.

For battery electric vehicles, Mahindra’s capacity is expected to grow from 8 thousand units at FY26 exit to 12 thousand units by FY27 exit. The additional 4 thousand units of BEV production capability will support upcoming electric vehicle launches. The company’s manufacturing strategy reflects increasing focus on electrification alongside continued growth in SUV demand.

Production Capacity Milestones From FY26 To FY31

Period	Planned Production Capacity
FY26 Exit	64.5 thousand units
FY27 H1 Exit	68 thousand units
FY27 Exit	82 thousand units
FY28 Exit Target	92 thousand units operational capacity

The overall production capacity is expected to rise from 64.5 thousand units at FY26 exit to 68 thousand units by FY27 H1 exit and 82 thousand units by FY27 exit. An additional 14 thousand units will be allocated for new launches planned during FY28. The expansion strategy combines facility development, platform capacity enhancement and powertrain-specific production scaling to prepare for future market growth.

Frequently Asked Questions

What is Mahindra and Mahindra production capacity target by FY31?
The company plans to double its production capacity between FY26 and FY31 exit periods through new facilities, capacity additions and manufacturing improvements. The expansion includes a Nagpur greenfield plant, Chakan platform capacity enhancement and increased output capability for SUVs and electric vehicles, enabling Mahindra to support future launches and growing customer demand while strengthening its manufacturing network.

How will Mahindra increase electric vehicle production capacity?
Mahindra will increase battery electric vehicle manufacturing capability from 8 thousand units at FY26 exit to 12 thousand units by FY27 exit. The additional capacity will support upcoming electric vehicle launches and contribute to the company’s broader electrification strategy while maintaining production growth across its vehicle portfolio.