Mahindra & Mahindra Ltd. has started working on its expansion plans and thus the company is all set to start with new planning, which primarily aims to raise the production capacity of the company at its western India plant.

The company, presently, manufactures 8,000 units and has plans to increase this figure to 12,000 vehicles a month, confirmed a senior executive on Wednesday.

"All our facilities are running at full capacities. We need to increase our capacity at the Chakan plant", said Mr. Pawan Goenka, President for automotive and farm equipment to reporters on the sidelines of the annual conference of the Society of Indian Automobile Manufacturers.

Western India plant of the company, basically, manufactures pickup vehicles. According to the plans, the plant will also start making new sport-utility vehicle XUV500, which Mahindra will be introducing in December end.

Mr. Pawan Goenka, President-Automotive Division primarily said that the company will make any new forecast only after carefully studying its performance for at least 3 months.

He added that earlier, when the company followed the same procedure in July, it had to later reduce it by couple of percentage points as compared to the original forecast. Thus, taking no risk is company’s important focus.