Mahindra has set its sights on a one million unit annual vehicle production target by 2030. Sources say the company is in the initial stage of looking for a new piece of land for an upcoming factory that will house its most ambitious future multi-energy platform.
- Mahindra currently has 8 lakh unit annual production capacity
- Future multi-energy models have a yearly volume potential of 3 lakh units
- Company eyeing land parcels around Chakan, Aurangabad area
Mahindra’s future SUV strategy
With the current SUV range including the likes of the Bolero, Scorpio, Thar, XUV, and the upcoming born-electric BE line-up, Mahindra has the vision to maximise the existing capacities at Chakan and Nashik facilities. Both these plants have a combined capacity of about 8 lakh units. 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 around Shirur, Ahmednagar, 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 capacity 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.
Mahindra has also been actively looking at any potential acquisition opportunity. The company is believed to have been interested in General Motors’ Talegaon facility, which was eventually acquired by South Korean car maker Hyundai Motor India.
In a slowing market, M&M has already guided for mid-to-high teens growth backed by its new launches like 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
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