Mahindra Last Mile Evaluates Near-Doubling of Capacity Ahead of Proposed IPO

MUMBAI, August 25, 2026: Mahindra Last Mile Mobility Limited is evaluating a near-doubling of its manufacturing capacity as rising demand for electric commercial vehicles pushes the company to consider expanding existing factories and establishing another production facility.

Managing Director and Chief Executive Officer Suman Mishra told Business Standard that additional capacity would be required at the company’s Zaheerabad and Haridwar operations.

"Zaheerabad needs expansion, Haridwar needs expansion, and maybe we need a new facility also," Mishra said.

The company has not decided whether it will rely entirely on brownfield expansion or build a greenfield plant. Mishra said creating the additional capacity could require 18 to 24 months. No investment amount, location for a potential new factory or final expanded capacity has been announced.

Existing Footprint and Capacity

Mahindra Last Mile primarily manufactures vehicles at Zaheerabad in Telangana and Haridwar in Uttarakhand. Zaheerabad, where the company produces its UDO electric passenger three-wheeler, has an annual capacity of 160,000 units on a two-shift basis. About 90,000 units of that capacity were being utilised as of February, according to a Mahindra regulatory filing cited by Business Standard.

Preparations for a Proposed IPO

The company is also preparing for a proposed initial public offering, although detailed work has not started. Mishra indicated that a listing could take 12 to 18 months. Mahindra Last Mile has not appointed investment bankers or consultants, and it has not decided whether the IPO would consist of newly issued shares, an offer for sale by existing investors or both. Detailed preparations are expected to begin after the festive season, with timing dependent on capacity expansion, growth and profitability.

Product Pipeline and EV Adoption Trends

Its product plan includes eight new models and variants over the next two years across electric three-wheelers and four-wheelers. The company is targeting higher-range and higher-payload vehicles, particularly for cargo applications.

Mishra said electric penetration in the higher-powered L5 passenger three-wheeler category had crossed 40%, while penetration was around 20% in L5 cargo three-wheelers and 13% to 14% in four-wheeler cargo vehicles. These lower cargo adoption levels represent a potential growth area.

The expansion follows Mahindra Last Mile’s announcement that it had crossed 400,000 cumulative EV sales across passenger and cargo applications. It sold 107,157 electric vehicles in FY26, up 36.5% from the previous year.

Additional capacity and a broader product range could strengthen Mahindra’s position in electric last-mile transport before the proposed listing. However, both the manufacturing plan and IPO timetable remain under evaluation.