Chennai: Mahindra & Mahindra Ltd has committed ₹196 crore towards expanding and upgrading its Research & Development (R&D) centre in Chennai, the company announced today.
The investment will significantly enhance the facility’s capacity to develop next-generation electric vehicles (EVs), battery systems, advanced driver-assistance systems (ADAS), software-defined vehicle architecture, and hydrogen propulsion technologies.
Key Highlights of the Investment
- New EV & Battery Labs — Dedicated high-voltage battery testing, cell chemistry evaluation, and thermal management facilities.
- Advanced Simulation & Virtual Validation Centre — Expansion of digital twin and CAE capabilities to reduce physical prototyping time by up to 40%.
- Software & AI Competency Hub — Focused on embedded software, OTA updates, AI/ML-based predictive maintenance, and autonomous driving algorithms.
- Hydrogen & Alternative Fuels Wing — Early-stage R&D on hydrogen internal combustion engines and fuel cell systems.
- Capacity Addition — The centre’s workforce is expected to grow from ~1,200 to ~2,100 engineers and researchers over the next 24 months.
Strategic Importance
Anish Shah, Group CEO & MD, Mahindra & Mahindra, commented:
“This investment reaffirms our commitment to building world-class, in-house R&D capabilities in India. Chennai has emerged as one of our strongest innovation hubs and this expansion will accelerate our transition to an EV & tech-led portfolio while supporting the government’s Atmanirbhar Bharat and Make in India vision.”
The Chennai R&D centre already plays a pivotal role in the development of the XUV 3XO, XUV700, Scorpio-N, Thar Roxx, and the upcoming BE 6e and XEV 9e electric SUVs. The new investment is expected to fast-track future platforms, including the INGLO born-electric architecture and the global BE.05 and BE.07 models.
Timeline & Employment Impact
- Phase-1 expansion completion targeted by Q3 FY27 (Dec 2026).
- Phase-2 (hydrogen & advanced ADAS labs) by mid-FY28.
- Estimated direct employment addition: 800–1,000 high-skilled roles in engineering, data science, AI/ML, and testing.
Market & Industry Context
The announcement comes at a time when Mahindra is aggressively scaling its EV portfolio with the goal of launching 15+ electric SUVs and pick-ups by 2030. The company aims for EVs to contribute 30–35% of its PV sales by FY30.
Domestic and global investors welcomed the move, viewing it as a strong signal of Mahindra’s long-term commitment to technology leadership in the fast-evolving automotive landscape.
