Mahindra will expand its Mahindra Research Valley (MRV) in Chennai, Tamil Nadu with a Rs1.96bn ($21.6m) investment to boost vehicle design and engineering capabilities.

The Indian automaker said the planned expansion of its advanced research and development (R&D) centre and testing facilities at MRV will increase capacity for advanced vehicle design, product engineering, and future technology development.

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It added that the move will strengthen engineering and testing operations in the region.

Additional testing infrastructure and R&D resources are intended to support the development of next-generation vehicle platforms across multiple segments.

The enlarged facility is expected to be operational within the current calendar year.

Once fully functional, the expansion is projected to generate about 2,000 new roles spanning engineering, research and technical functions.

MRV currently has a workforce of roughly 5,000 employees at its 125-acre Chennai campus.

Mahindra said the investment forms part of its ongoing efforts to broaden R&D and testing infrastructure in India.

Mahindra automotive business president R Velusamy said: “This expansion underscores our long-term commitment to advancing product engineering capabilities in India, enhancing global competitiveness, and leveraging cutting-edge technology to deliver superior products to customers worldwide.

“Supported by Tamil Nadu’s robust Industrial ecosystem and talent base, MRV will continue to serve as Mahindra’s global hub for innovation, excellence in engineering & future-ready mobility solutions.”

Last week, the company announced plans to invest Rs150bn over ten years to expand its manufacturing footprint in Maharashtra.

This programme includes a new automotive plant near Nagpur in the Vidarbha region, covering around 1,500 acres, along with a 150-acre supplier park in Sambhajinagar.

Recently, Mahindra also selected Mobileye to provide advanced driver-assistance systems for at least six upcoming vehicle models, with production scheduled to start in 2027.