Mahindra eyeing new factory in Maharashtra

New factory will focus on the brand’s future multi-energy SUV platform.

Published On Sep 20, 2024 02:12:00 PM

422 Views

Mahindra aims to manufacture one million units annually by 2030. Sources say that the company is looking for a new piece of land for an upcoming factory that will house its most ambitious future multi-energy platform.

Mahindra's current annual capacity is 8 lakh units
Future multi-energy models have an annual volume of 3 lakh units
Company eyeing land parcels around Chakan, Aurangabad

Mahindra’s future SUV strategy

With the current SUV range including the Bolero, Scorpio, Thar, XUV and the upcoming born-electric BE line-up, Mahindra has the vision to maximise the existing capacities at its Chakan and Nashik facilities. Their combined capacity is about 8 lakh units, and with the all-new future product-range, it will need more capacity.

The future multi-energy architecture is expected to produce close to a dozen models, and the combined volume potential from the new platform ranges from 3 lakh units to half a million units per annum. The existing facilities cannot accommodate more models.

“The company would like to acquire land parcels in and around Chakan; alternatively, it is keen on locations about halfway between Pune and Aurangabad to ensure it remains in and around the automotive belt to retain a logistical cost advantage,” said one of the several people in the know of the development.

Mahindra has already expanded its manufacturing capacity from 30,000 units a month in 2022 to 49,000 units at present in a short span of 24-36 months. Mahindra has announced that it aims to reach 64,000 units per annum by the end of the current financial year, which will further increase to 72,000 units by the end of FY26, thereby taking the overall capacity to 8.64 lakh units.

The company is believed to have been interested in General Motors’ Talegaon facility, which was eventually acquired by South Korean carmaker Hyundai Motor India. In a slowing market, M&M has already guided for mid-to-high teens growth backed by its new launches like the 3XO and Thar Roxx. If the company manages to attain its target, it will cross the half-million-unit sales milestone for the first time this financial year.

With inputs from Ashutosh R Shyam

Also See:

20 bestselling SUVs, MPVs in April-August 2024

Tata JLR Tamil Nadu plant foundation stone to be laid on September 28