Mahindra plans massive upgrade to Chakan plant in Pune, to add 90,000-unit capacity

Mahindra and Mahindra will add 90,000 units per year capacity at its plant at Chakan near Pune by March 2025, as the utility vehicle maker gets set to launch its brand new electric origin sports utility vehicles—the BE 6e and XEV 9e. 

The two SUVs were unveiled on Tuesday evening in Chennai. On Wednesday, the Tata rival demonstrated its various capabilities at its SUV-proving track in Tamil Nadu. 

Over the financial years 2022–2027, Mahindra had outlined plans to invest Rs 16,000 crore. Out of this Rs 4,500 crore investment has been allocated for the development of the two new SUVs, which includes powertrain development, software, technology and manufacturing capacity. 

The BE 6e will cost Rs 18.90 lakh introductory, ex-showroom and the XEV 9e has been priced at Rs 21.90 lakh ex-showroom. 

The plan will be to focus on stabilizing sales in the Indian market before launching both SUVs in international markets. 

"You have a substantial market size in the Rs 21.90 lakh to Rs 30 lakh price points. So, there is a substantial opportunity. Our strategy is around creating lifestyle products, which are accessible," said Rajesh Jejurikar, executive director and CEO of Mahindra's automotive and farm equipment sector. 

Both SUVs have distinct design elements and are packed with safety and technology features. Deliveries are expected to begin from February-end or March 2025. 

He feels the top 50–70 towns in the country will see traction and acceptance for the two SUVs. Metros, mini-metros and class-A towns are where the target will be. 

Keeping the aspirational customer and lifestyle quotient in mind, the company will also launch a unique go-to-market strategy with the two new electric SUVs, which are more aspirational and premium products than some of the current offerings in the market. 

For instance, 500 specialists will be recruited from luxury and premium brands to provide pre-purchase drive experiences. 

"We are creating a team of capable salespeople who have experience selling luxury and premium brands. Part of the cost we will bear, part of the cost dealers will bear. We are selecting them, training them and every dealer will have 1-2 of them," said Jejurikar. 

Also, it will have around 400 tech experts for a seamless customer experience. 

Notably, Mahindra has no plans to launch separate dealerships for electric vehicles. It will sell them through its existing dealerships, although it will have showroom-within-showrooms for the new electric SUVs. 

Company officials said that they would rather have customers walk into showrooms and experience the wider choice of vehicles, including the new EVs as well as the existing range of petrol and diesel SUVs. 

Limited charging infrastructure and apprehension of vehicles running out of charge midway have been among the reasons EVs haven't picked up in a big way in the country. 

Mahindra is launching a dedicated vertical CHARGE.IN, which will have over 350 dedicated experts and a relationship manager for the first time to address all charging-related issues. The company is also working with charging operators. 

Mahindra also created an app which would come with the product and have an integrated charging experience. 

"We are tying up with multiple charge point operators so that the visibility to charging stations will be all available on one app. You won't need to download 10–15 different apps," said Jejurikar. 

Mahindra firmly believes that EVs should be the end technology, as there is little difference in emissions and efficiency between a hybrid and internal combustion engine, but the company may plan hybrids if and when there is customer demand, Jejurikar added.