Mahindra & Mahindra (M&M) plans to expand production capacity for its internal combustion engine (ICE) SUVs and battery electric vehicles (BEVs) in phases through FY2027, with additional capacity reserved for new models scheduled for launch in FY2028, as part of a broader manufacturing strategy that will see the company double its overall production capacity between FY2026 and FY2031.

Speaking during the company's earnings press conference, Rajesh Jejurikar, Executive Director and Chief Executive Officer of the Auto and Farm Sector at Mahindra & Mahindra, said the company remains on schedule to achieve its near-term manufacturing targets while continuing to invest in future production capacity.

"We are on track to hit all our near-term manufacturing milestones while simultaneously investing in future capacity across multiple plants. We had said that we will be at 60,000 per month exit at the end of September this year. We are on track for that," he said.

Looking beyond FY2027, Mahindra plans to add further production capacity for vehicles based on its NU-IQ platform at its Chakan plant. The company's new greenfield manufacturing facility in Nagpur will support launches from FY2029 onwards, with further phased capacity expansion planned through FY2031.

Jejurikar said the company expects to double its overall manufacturing capacity between FY2026 and FY2031.

"At this time, we are not giving out an exact number for capex, but it will be a sizable investment. Not all the capex is from Nagpur; some is from Chakan expansion and is already included in the current capex," he added.

The Nagpur project forms part of Mahindra's long-term investment plans. Addressing shareholders during the company's 80th Annual General Meeting on July 30th, 2026, Chairman Anand Mahindra highlighted the company's continued investment in research and development.

He also referred to the company's planned Rs. 150 billion (US$ 1.5 billion) investment over the next decade to establish an integrated automobile and tractor manufacturing complex in Nagpur, Maharashtra. The proposed facility will cover approximately 1,500 acres and is expected to begin production in 2028.

The plant will support the production of internal combustion, electric and future powertrain vehicles for domestic and export markets while also supporting the company's NU-IQ platform. A 150-acre supplier park at Sambhajinagar will supply components to the Nagpur facility as well as Mahindra's existing factories at Chakan and Nashik. Over the coming decade, the company expects to acquire more than 2,000 acres across three locations in Maharashtra.

Mahindra & Mahindra also announced a series of initiatives spanning electric mobility, research and development, and vehicle recycling as it prepares for new product launches and increasing electrification.

One of the company's announcements was that its electric three-wheeler subsidiary, Mahindra Last Mile Mobility (MLMML), has achieved unicorn status after raising approximately Rs. 3.2 billion in a funding round led by Lightrock. The round also included participation from existing investors, including the International Finance Corporation (IFC) and the India-Japan Fund, managed by the National Investment and Infrastructure Fund (NIIF). The investment values MLMML at Rs. 108.2 billion ahead of its planned initial public offering, expected during the second half of FY2027.

The company said the funding reflects investor confidence in India's electric commercial vehicle sector, where Mahindra holds around 40% of the L5 electric three-wheeler market. According to the company, sales of its electric three-wheelers have increased six-fold over the past four years, while volumes rose 85% year on year in the first quarter of FY2027.

"We welcome Lightrock as a partner marking a pivotal milestone in our last mile mobility initiative, highlighting the transformative potential of our growth gems, with Lightrock joining alongside IFC and IJF, MLMML has now achieved unicorn status in the electric vehicle market. This investment brings us closer to our goal of deploying 1 million EVs on India roads by 2031," said Group Chief Executive Officer and Managing Director Anish Shah.

Rajesh Jejurikar said the investment reflects the growth potential of the company's electric commercial vehicle business.

"With approximately 40% market share in the L5 segment, it is operating in a market that has increased from 12%-40% electrification in just two years," he said.

Mahindra noted that electric three-wheeler penetration in India has increased from 12%-40% over the past two years. Beyond electric mobility, the company outlined manufacturing expansion plans aimed at doubling its manufacturing capacity between FY2026 and FY2031.

For the quarter ended June 30th, 2026, M&M reported a 7% year-on-year increase in standalone net profit to Rs. 36.9 billion, compared with Rs. 34.5 billion a year earlier. Automotive revenue increased 24.4% to Rs. 310.3 billion, while revenue from the farm equipment business rose 19.2% to Rs. 109.5 billion.

Responding to criticism that Indian companies do not invest sufficiently in innovation, Mahindra said the number of patents granted to the company has increased from 56 to more than 1,300 over the past decade.

Mahindra said consolidated revenue increased 25% to Rs. 2 trillion during FY2026, while profit after tax, excluding a prior-year land sale gain, rose 35% to Rs. 171 billion. The company currently holds more than 25% of India's SUV market by revenue, leads the tractor market with a 43.6% share, and stated that electric vehicles accounted for 9.6% of its automotive sales during the March quarter.

During the AGM, Anand Mahindra described the current global environment as "Manthan 2.0", referring to increasing geopolitical uncertainty and supply chain disruptions.

"Black swan events may be obsolete, because the pond now seems full of black swans," he said.

Mahindra said periods of disruption require "strategic acceleration" rather than caution.

"It is not reckless speed. It is strategic acceleration. We will not wait for perfect visibility," he said.

The company acknowledged that the expansion strategy carries execution risks amid increasing competition and significant capital investment requirements but stated that it expects its product platforms and manufacturing footprint to support its future growth plans.

In addition to manufacturing and electrification, Mahindra is preparing to expand its vehicle recycling business. The company said its recycling operations, managed by Mahindra Accelo, are expected to become more significant as India's vehicle scrappage and Extended Producer Responsibility (EPR) policies take effect.

"Accelo is one of the leaders in recycling, but overall recycling volumes are not that high as yet. With some of the new policies that have been put in place kicking in starting next year, we're going to start seeing the recycling business really start taking off. So that is a small business for us right now, but it will start becoming more meaningful as we go forward," Shah said.

Mahindra said the expansion of its recycling operations is intended to recover materials such as steel and aluminium from end-of-life vehicles, reducing dependence on primary raw materials and mitigating commodity price volatility.