Mahindra & Mahindra has announced plans to establish its largest integrated automobile and tractor manufacturing facility in Nagpur, Maharashtra, committing a cumulative investment of Rs15,000 crore over the next decade. The project marks one of the biggest capacity expansions in India’s auto sector in recent years and signals Mahindra’s intent to prepare for the next phase of growth in both mobility and farm mechanisation.
The announcement was made on February 6 at Advantage Vidarbha, a flagship event aimed at positioning the Vidarbha region as an emerging industrial hub. For Maharashtra, the project is a major boost at a time when states are competing aggressively to attract large manufacturing investments under the Centre’s Make in India and production-linked incentive programmes.
Spread across 1,500 acres in Nagpur, the new complex is scheduled to begin production in 2028. Once fully operational, it will have an annual capacity of more than 5 lakh vehicles and 1 lakh tractors, making it Mahindra’s largest manufacturing footprint in the country. The scale reflects the company’s confidence in sustained long-term demand for SUVs, passenger vehicles and agricultural equipment in India and global markets.
India’s automobile industry is undergoing a structural transformation. Rising incomes, improving infrastructure and a strong consumer preference for SUVs have driven record sales for most automakers. At the same time, the shift toward electric mobility, tighter emission norms and rapid digitalisation of manufacturing have forced companies to redesign supply chains and production strategies. Mahindra, which has emerged as one of India’s fastest-growing SUV makers and an early mover in electric vehicles, is positioning the Nagpur plant as a future-ready facility capable of adapting to these changes.
A key part of the plan is a 150-acre supplier park to be developed in Sambhajinagar. The park will bring component manufacturers closer to the main facility, improving logistics efficiency, lowering costs and enhancing localisation. It will supply parts not only to the Nagpur complex but also to Mahindra’s existing plants in Chakan and Nashik, helping create a tightly integrated manufacturing ecosystem within the state.
The automotive facility will support Mahindra Auto’s next-generation platforms, including the NU_IQ architecture, and will be capable of producing vehicles across multiple powertrains—internal combustion engines, electric vehicles and future technologies—for domestic and export markets. Advanced automation and digital manufacturing systems will be central features. The tractor unit will further reinforce Mahindra’s leadership in farm equipment as rising mechanisation and government support continue to drive demand.
Beyond Nagpur, Mahindra plans to acquire land in the Igatpuri-Nashik region to expand current product and engine capacities and to support its advanced technology businesses. Overall, the company will acquire more than 2,000 acres across three locations in Maharashtra as part of this long-term investment programme.
Vidarbha’s strategic advantages were crucial to Mahindra’s decision. The region offers excellent connectivity through the Samruddhi Expressway, strong rail links and easy access to key domestic markets and export routes. Its steadily improving industrial ecosystem has made it an attractive destination for large-scale manufacturing, while the supplier park in Sambhajinagar is expected to encourage further ancillary investments.
Maharashtra Chief Minister Devendra Fadnavis called the project a strong endorsement of the state’s industrial environment, highlighting its potential to generate employment and accelerate regional development. Rajesh Jejurikar, executive director and CEO of Mahindra’s Auto and Farm Sector, said the facility would bring scale, flexibility and advanced technology under one roof, strengthening the company’s commitment to “Make in India for the World.”
For an auto industry targeting $300 billion in value by the end of the decade, Mahindra’s mega investment signals that Indian manufacturers are gearing up for a more competitive, technology-driven future.
First Published: Feb 06, 2026, 16:59
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