Mahindra & Mahindra (M&M) is accelerating capacity expansion across its existing plants while laying the groundwork for a new 6 lakh-unit integrated manufacturing hub in Nagpur, as it prepares for the rollout of its next-generation NU_IQ platform-based SUVs.
Near-Term Strategy
In the near term, the company is focused on debottlenecking operations at its Chakan and Nashik facilities to address supply constraints amid strong SUV demand. The company expects to unlock additional 3,000–5,000 units of vehicles with internal combustion engine (ICE) per month through targeted interventions across plant lines and supplier capacities. Alongside, it plans to add 3,000–4,000 units of electric vehicle (EV) capacity this year, taking the combined incremental monthly ramp-up in FY27 to around 6,000–7,000 units.
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector), said the first product under the new NU_IQ architecture will roll out from Chakan in 2027. Initial capacity for the platform is being built at the facility, with a phased ramp-up planned thereafter. As volumes scale up, models under the NU_IQ portfolio, including production versions of the Vision S, Vision T and Vision X concepts will be distributed across manufacturing locations. Vision X-based SUV, in particular, is slated for production at the upcoming Nagpur plant.
The capacity push comes as demand across SUV models such as the Nexon rivaling 3XO, refreshed Bolero and Bolero Neo, the Scorpio N and recently launched XUV7XO has pushed several production lines to full capacity utilisation.
Nagpur Mega-Hub
The proposed Nagpur facility, backed by an investment of Rs 15,000 crore, will be M&M’s largest integrated manufacturing hub. The plant will have a combined annual capacity of 5 lakh vehicles and 1 lakh tractors and will be designed for modular expansion. It will support production across ICE, EV and future powertrains for both domestic and export markets.