Mahindra Last Mile Mobility Targets Eight Launches and Doubled Production Capacity by FY29

For fleet operators waiting on backordered delivery vans, the bottleneck is real. Mahindra & Mahindra has run out of factory floor space. Now, it must build its way out. The group's last-mile mobility division plans to double vehicle production capacity by FY29, lining up eight new models to catch up with commercial demand running far ahead of factory output. Domestic sales leaped 36.7% to 52,869 units in the second quarter of FY27—up from 38,684 units a year earlier—with battery-powered haulers driving almost the entire gain.

The plants are maxed out. Mahindra confirmed its assembly lines are operating at 100% capacity, leaving zero breathing room to absorb incoming bookings through the second half of FY27. Deliveries of its Udo electric hauler crossed 26,000 units in the first half of the fiscal year alone. "Udo has been a resounding success and we see a lot of upside to volume on that," said Rajesh Jejurikar, executive director for Auto and Farm at Mahindra & Mahindra, speaking during an official media briefing. "Unfortunately, you know, we don’t have the capacity to leverage the huge demand that’s coming." While Mahindra held back specific launch dates for the eight incoming products, factory debottlenecking is now the company's immediate operational focus.

Factory Ceilings and the Electric Shift

Electric three- and four-wheelers now generate the overwhelming bulk of the division's business. In the July–September quarter, EV sales jumped 41.4% to 45,287 units, making up nearly 86% of total domestic volumes. Traditional internal combustion engine models grew at a far milder 13.8%, settling at 7,582 units. Total April-to-September sales reached 95,145 units, establishing an electric road fleet that now exceeds four lakh three-wheelers across India.

| Operating Metric | Q2 FY27 Performance | Year-on-Year Growth | Context / Baseline |

Chasing the 3.5 Lakh Fleet Run-Rate

Shift dynamics across the cargo and auto-rickshaw trades explain the rush. Electric penetration in the commercial L5 three-wheeler category reached 41.4% in the second quarter, according to group data citing the Society of Indian Automobile Manufacturers. Operating economics have flipped the balance. Low per-kilometer fleet charging costs mean drivers and delivery logistics firms are abandoning diesel and CNG equivalents as quickly as production lots can clear them. The industry projects the category to cross 50% electrification by FY30.

Yet Mahindra's sights stretch well past the current quarter. The division, recently valued at ₹10,822 crore as it readies for an initial public offering, intends to deliver 3.5 lakh electric units annually by FY30. That goal represents a twenty-five-fold expansion over its FY20 baseline of 14,000 vehicles, following an interim target of roughly 1.05 lakh units by FY26. For buyers waiting in dealer queues, relief rests entirely on how swiftly new assembly lines break ground before FY29.