Mahindra & Mahindra to Finalise Greenfield Plant Location in 6 Months

As per an ET report, Mahindra & Mahindra (M&M) is set to finalise the location for its proposed greenfield manufacturing plant within the next six months. The move aligns with the company’s strategy to expand its utility vehicle (UV) capacity beyond the one-million-unit mark during FY26–27. 

Rajesh Jejurikar, Executive Director and CEO of the Automotive and Farm Equipment Sectors at M&M, confirmed that the company is actively evaluating multiple land parcels across different states.

Flexible Location Strategy and Logistics Focus

According to the ET report, Mahindra is not restricting the new facility to its existing manufacturing clusters. Improved road infrastructure and faster logistics have reduced the dependency on proximity to current plants. Rail connectivity, especially for outbound vehicle movement, is a key factor in the decision-making process, reflecting the company’s focus on efficient distribution and long-term scalability.

Strong Volume Growth Driving Capacity Needs

Mahindra’s capacity expansion follows a phase of strong volume growth. The company has climbed from fourth to second position in India’s passenger vehicle market, overtaking Hyundai Motor India and Tata Motors. 

Vehicle registrations rose to around 5.81 lakh units, up from 4.90 lakh units in 2024, driven by robust demand for its SUV lineup and new electric vehicle launches.

Three-Pronged Capacity Expansion Plan

As per ET, the greenfield plant forms part of Mahindra’s three-pronged capacity strategy. The first step involves debottlenecking existing facilities to extract incremental volumes. The second includes creating additional capacity at the Chakan plant for a new vehicle platform unveiled on August 15. The third pillar is the greenfield facility, aimed at meeting medium- and long-term demand.

Product Pipeline and Future Outlook

Mahindra plans to raise monthly production from 61,500 units to 85,000 units by the end of FY26, taking annual installed capacity beyond one million units. Growth will be supported by higher output of models such as the XUV 3XO and Thar ROXX, along with a new platform at Chakan. The recently launched XUV 7XO is expected to lift monthly sales by nearly 30%.

M&M Share Price Performance

On January 13, 2026, M&M share price opened at ₹3,717.00, touching the day’s low at ₹3,636.70, as of 12:20 PM on the NSE.

Also Read: Dec 2025 Auto Sales!

Conclusion

The proposed greenfield plant will play a crucial role in Mahindra & Mahindra’s long-term production roadmap. With a clear focus on profitable growth, expanding market share, and maintaining margins, the new facility is expected to strengthen the company’s position in India’s fast-evolving automotive landscape.

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