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Mahindra hits capacity ceiling amid strong SUV demand; inventory falls below 9 days

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Mahindra hits capacity ceiling amid strong SUV demand; inventory falls below 9 days

Mahindra hits capacity ceiling amid strong SUV demand; inventory falls below 9 days

The automaker is scaling up production across ICE and electric SUVs while preparing five major vehicle launches in the first half of 2027.

Mahindra plans capacity expansion and five launches in H1 2027, while cutting its FY27 tractor industry growth outlook to flattish.

Mahindra and Mahindra is witnessing a strong demand in its automotive portfolio, with production constraints limiting its ability to fully tap the growing demand. According to its management, dealer inventory had fallen to less than nine days across most of the SUV portfolio, excluding vehicles in transit. “We are operating at full capacity, or a little more than full capacity in fact. Our numbers reflect a capacity constraint and the fact that we are on a high growth. SUV stocks are really in physical stock terms (except for what's in transit), close to zero in most of the portfolio—less than 8–9 days of physical stock,” Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said during the company's Q2 FY27 media interaction. Advt

Jejurikar said the company has been on track with its planned capacity expansion. The company started FY27 with monthly SUV capacity of around 64,500 units and expects to increase this to 82,000 units by the end of the current financial year. Capacity is planned to rise further to 92,000 units per month in the next financial year and 1,32,000 units by the end of FY31, as a new plant comes on stream.


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