Mahindra scouts for land parcel for new plant; looks to bolster service network

Mahindra is scouting for a land parcel to set up a greenfield manufacturing plant with a target to ramp up vehicle production, which will cater to both domestic and export markets. The homegrown auto major has unveiled its new modular and multi-energy NU IQ vehicle platform that will underpin a wide range of SUVs. Mahindra aims to have 10 lakh production capacity for EVs alone by 2027. The new platform and facility will play a key role in that strategy.

The first product underpinned by the NU IQ platform is expected to launch in 2027. The new architecture has been engineered to tap into the segments across India and global markets. This new platform comes in addition to the automaker's already announced product pipeline on existing architectures.

Speaking to PTI, Mahindra & Mahindra Auto Division CEO Nalinikanth Gollagunta said that the auto company is looking to scale up production capacity at its Chakan-based plant by 2.4 lakh units. "We'll need more capacity than that. So, we are in the process of finding sites where we can put out a greenfield additional capacity," he noted. However, he didn't give any timeline for setting up the new facility. “Very difficult to say, because land acquisition has its own compulsions," Gollagunta stated.

The Mahindra official has noted that the company is still looking around for the land parcel. The company has also submitted a letter of interest to the Maharashtra Government to acquire 350 acres of land in Igatpuri. The automaker already has manufacturing plants in Nashik and Igatpuri.

Mahindra aims to bolster its service network

With its product lineup expanding, Mahindra is looking to bolster its service network by 150-200 outlets every year to cater to the growing number of vehicles across the country. The automaker, which is gearing up to further expand its SUV lineup with both internal combustion engine and battery electric powertrains, is looking to strengthen its service function to cater to evolving customer requirements.

Gollagunta said service network expansion is of equal importance, if not more, for the company as compared to the increase in dealerships. "So, that's an area we really are focused on over the last couple of years, and we're trying to grow it by about 10-15 per cent every year, at the very least, because that's an area where we believe that if you can do well and provide the right kind of service network and the customer experience could be better than what it is right now," he stated.

The company's service network currently stands at around 1,100 outlets, and in any given year, the automaker is looking at adding anywhere between 150 and 200 new outlets, Gollagunta noted. The company is also looking to enhance service capacity at the existing sites, he added. "Our car parc is growing by 10-15 per cent every year. So, just to keep up, we need to grow those kinds of numbers," he stated.

When asked about the regions where additional service outlets would come, Gollagunta stated that the expansion will happen across the board, entailing both urban centres and rural, semi-urban regions. He noted that the Mahindra brand, 10-15 years ago, had more relevance in semi-urban and rural areas, but that has changed now, with a slew of products being lapped up in urban areas as well.

Check out Upcoming Cars in India 2026, Best SUVs in India.