Mahindra Scouts for Land Parcel for New Plant; Looks to Bolster Service Network

Mahindra & Mahindra is scouting for a land parcel to set up a greenfield manufacturing plant to ramp up production to cater to the domestic and export markets, according to a senior company executive.

The Mumbai-based auto major has unveiled its all-new modular, multi-energy NU IQ platform that will support a new range of SUVs, with the first product roll-out expected in 2027.

The multi-energy platform has been engineered to address untapped white spaces across India and global markets.

The new platform is in addition to the company's already announced product pipeline on existing platforms.

In an interaction with PTI, Mahindra & Mahindra Auto Division CEO Nalinikanth Gollagunta said the company is looking to scale up production capacity at its Chakan-based plant by 2.4 lakh units.

"We'll need more capacity than that. So, we are in the process of finding sites where we can put out a greenfield additional capacity," he noted.

When asked about the expected timelines to set up the new facility, Gollagunta stated: "Very difficult to say, because land acquisition has its own compulsions".

He noted that the company is still looking around for the land parcel.

Mahindra aims to have 10 lakh production capacity for EVs alone by 2027.

The company has also submitted a letter of interest to the Maharashtra government to acquire 350 acres of land in Igatpuri, Maharashtra. The automaker already has manufacturing plants in Nashik and Igatpuri.

With the product lineup expanding, the automaker is looking to bolster its service network by 150-200 outlets per year to cater to the growing vehicle parc across the country, according to the senior company executive.

The Mumbai-based automaker, which is gearing up to further expand its SUV lineup with both internal combustion engine and battery electric powertrains, is looking to strengthen its service function to cater to evolving customer requirements.

Gollagunta said service network expansion is of equal importance, if not more, for the company as compared to the increase in dealerships.

"So, that's an area we really are focused on over the last couple of years, and we're trying to grow it by about 10-15% every year, at the very least, because that's an area where we believe that if you can do well and provide the right kind of service network and the customer experience could be better than what it is right now," he stated.

So, that's a very important focus area for the company right now, he noted.

The company's service network currently stands at around 1,100 outlets, and in any given year, the automaker is looking at adding anywhere between 150 and 200 new outlets, Gollagunta noted.

The company is also looking to enhance service capacity at the existing sites, he added.

"Our car parc is growing by 10-15% every year. So, just to keep up, we need to grow those kinds of numbers," he stated.

When asked about the regions where additional service outlets would come, Gollagunta stated that the expansion will happen "across the board", entailing both urban centres and rural, semi-urban regions.

He noted that the Mahindra brand, 10-15 years ago, had more relevance in semi-urban and rural areas, but that has changed now, with a slew of products being lapped up in urban areas as well.

"Our customer base in the urban areas has grown tremendously. So, that's a critical focus area, (and) that in the core parts of the cities, you should have a good service network as well. And we have done some significant work on this in Mumbai, Delhi and a few places. But we have other cities where we want to continue to grow the outlets," Gollagunta stated.

A leader in the SUV space, Mahindra has seen market share grow from 11% to 27% over time.

On business outlook, Gollagunta noted that as stated earlier this year, the automaker is expected to log 15-20% year-on-year volume growth this year.

He also said that a robust monsoon augers well for the demand pick-up in the rural areas, and the festive season is also going to push sales.