Mahindra and Mahindra has gained 3% to Rs 671 on reports that the company plans to double production capacity of its indigenously developed sports utility vehicle, the XUV500, to expand presence in European and Australian markets.

The XUV500 is M&M’s biggest product initiative in the passenger vehicle market since the Scorpio launch of 2002. The XUV500 has seen a good response and registered 8,000 bookings in the domestic market within 10 days of launch.

“Strong demand in the domestic market had compelled a re-look at export strategy soon after its launch in September last year. Over the next three months, the vehicle would make its debut in markets across Europe, South and Central America," a report suggests.

A total 380,095 shares have changed hands on the counter so far on both the exchanges.