Mahindra Seeks Land for New Plant, Expands Service Network Reach

Mahindra & Mahindra (M&M) is looking for land to set up a greenfield manufacturing plant to ramp up production for both domestic and export markets. This comes on the heels of the company's report of its all-new INGLO-based NU IQ platform, based on the new modular, multi-energy platform for a new family of SUVs, the first of which is expected to launch in 2027.

"We have started ramping up our existing Chakan facility to add 2.4 lakh units annually, but we will need additional capacity other than that," said Nalinikanth Gollagunta, CEO of Mahindra & Mahindra's Auto Division. "We are looking at places where we can put up a greenfield facility," he told PTI, adding that the timelines for land acquisition were unknown. 

The company has also expressed interest in acquiring 350 acres in Igatpuri, Maharashtra. The company already has plants located in both Nashik and Igatpuri. Mahindra has set a target of achieving 10 lakh EV production capacity by 2027.

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Simultaneously, the company will ramp up its service network, which today has approximately 1,100 outlets, as it aims to add 150 to 200 new outlets per year, in urban, semi-urban and rural destinations, and enhance capacity at existing locations. "The expansion of our service network is just as critical as dealership expansion. We will grow this service network by anywhere from 10-15% each year due to increasing customer expectations," noted Gollagunta. 

Mahindra's expanding SUV lineup, which continues to come with internal combustion and electric drivetrains, has helped it grow it's market share from 11% to 27% over time. With rural demand supported by a strong monsoon and favourable festive season, the automaker expects to see volume growth of 15-20% for the year, reaffirming its position as a leader in India's SUV market.