M&M shifts gear for global next-gen SUVs, expanding capacity and sites

Looks to acquire 350 acres in Igatpuri, ramp up Chakan capacity by 240K units by FY27

Mahindra & Mahindra (M&M) on Friday unveiled four concept cars based on its new NU_IQ SUV platform, designed to support both internal combustion engine and electric vehicle models aimed at India and overseas markets. The move comes as the company ramps up capacity and seeks new sites for expansion. 

By FY27, the automaker plans to add 240,000 units per annum at its Chakan plant to meet growing demand and support upcoming launches. It has also submitted a letter of intent to the Maharashtra government to acquire 350 acres in Igatpuri, near Nashik. It had earlier  indicated plans to invest more than ₹27,000 crore in its automotive business between FY25 and FY27. 

The NU_IQ platform will underpin the company’s next generation of “core SUVs” for markets, including the EU, Australia and South Africa. 

“There was a time when global automakers dominated our roads and aspirations. Today, the tide has truly turned. Indian companies like Mahindra are now at the forefront of technology, scale and ambition,” said Anish Shah, M&M group CEO and managing director. “I am honoured to unveil our bold new vision for 2027 that will become the backbone of our next generation of world-beating SUVs, engineered right here in India, for India and the world.” 

M&M has already taken its XUV700 and XUV3XO models abroad and is exploring exports of EVs to the UK once the India–UK free trade agreement takes effect.   

According to Nalinikanth Gollagunta, CEO of M&M’s automotive division, NU_IQ will target “white spaces” in both right-hand- and left-hand-drive markets, and is designed to enable the transition to software-defined vehicles. It is cloud-ready for continuous digital updates, with advanced driver assistance and connected-car systems. 

The four concept models — Vision.S, Vision.T, Vision.SXT, and Vision.X — will cover the sub-4 metre and 4.3 metre segments. 

M&M defines “core SUVs” as the market excluding multipurpose vehicles and hatchback-derived crossovers, a segment that has grown from 20 per cent to 30 per cent of India’s passenger vehicle market. Mahindra sees the remaining as “white space”. 

In India, M&M’s revenue market share in SUVs has risen from 13.2 per cent in FY21 to 27.3 per cent today. 

The firm’s plants are running at 80 per cent capacity, prompting its latest expansion drive. The Chakan addition of 20,000 units a month will bring the site’s annual capacity to 750,000 units. 

The proposed Igatpuri acquisition would sit close to M&M’s Nashik and Igatpuri facilities. “We have submitted a letter of interest for 350 acres of land in Igatpuri, which is part of our ecosystem,” said Rajesh Jejurikar, executive director and CEO for auto and farm sectors. “The land parcel could be used for multiple things, including a supplier park and any other needs for Nashik or Igatpuri.” 

The automaker has indicated it is also open to further greenfield sites in the future.