Mahindra to set up largest integrated auto and tractor plant in Maharashtra with ₹15,000 crore investment
Mahindra Group plans a ₹15,000 crore integrated auto and tractor plant in Nagpur, Maharashtra, with production starting in 2028.
- ₹15,000 crore
- 1,500 acres
- 5 lakh vehicles; 1 lakh tractors
- 2028
What Happened
Mahindra Group announced plans to build its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra. The announcement came at Advantage Vidarbha, a three-day event positioning the region as an emerging industrial hub. The facility will be developed over 1,500 acres in Vidarbha, plus a 150-acre supplier park in Sambhajinagar. Once fully operational, it will have an annual production capacity of over 5 lakh vehicles and 1 lakh tractors.
₹15,000 crore
Over a 10-year period in Maharashtra
- 1,500-acre site in Vidarbha
- 150-acre supplier park in Sambhajinagar
- Over 5 lakh vehicles and 1 lakh tractors annual capacity
- Over 2,000 acres to be acquired across three locations
The Vidarbha region offers strong strategic advantages, including road connectivity via the Samruddhi Expressway, robust rail links, access to domestic and export markets, and a growing industrial ecosystem. The supplier park at Sambhajinagar will supply components to the new Nagpur facility as well as Mahindra's existing plants at Chakan and Nashik, strengthening the value chain through closer collaboration and improved logistics efficiency.
The automotive facility will support Mahindra Auto's next-generation platforms, including the NU_IQ architecture, and will be capable of manufacturing vehicles across multiple powertrains—ICE, EV and future technologies—for both domestic and global markets. It will feature advanced automation and digital manufacturing systems reflecting Mahindra's focus on innovation, quality and sustainability. The tractor manufacturing unit will reinforce Mahindra's leadership in the farm equipment sector, catering to growing domestic demand and key export markets. Mahindra will also acquire land in the Igatpuri-Nashik region to expand product and engine capacities and support its Advanced Technology business.
“Mahindra’s decision to establish its largest integrated auto and tractor manufacturing facility in Maharashtra is a strong endorsement of the state’s robust industrial ecosystem and progressive policy framework. This landmark investment will generate significant employment, accelerate regional development in Vidarbha and surrounding areas, and further reinforce Maharashtra’s position as a leading ”
“This facility represents a bold step forward in Mahindra’s manufacturing journey. Designed to support our next generation of vehicles and tractors, it brings together scale, flexibility and advanced technology within one integrated footprint. It strengthens our ability to deliver world-class products while staying true to our commitment to ‘Make in India for the World.’ We are proud to deepen our ”
Previously from Mahindra & Mahindra
Prior coverage noted that Mahindra's Chakan manufacturing facility reached three million vehicles in July 2026, led by the BE 6 electric SUV, with the latest million produced in just 27 months. The new Nagpur investment signals a further expansion of Mahindra's manufacturing capacity.
Background drawn from MotorClaw's earlier coverage of Mahindra & Mahindra's official releases.
Why this matters
This investment creates Mahindra's largest integrated manufacturing footprint, covering both vehicles and tractors with capacity for ICE, EV and future powertrains. It is expected to generate significant employment and accelerate development in Maharashtra's Vidarbha region, according to state officials. The facility aims to serve both domestic and global markets, reinforcing Mahindra's 'Make in India for the World' strategy.
Terms in This Story
- ICE
- Internal combustion engine; an engine powered by burning fuel to create motion.
- EV
- Electric vehicle; a vehicle powered by electricity from batteries.
- Powertrain
- The set of components that generate power and deliver it to the wheels.
- Lakh
- A unit in the Indian numbering system equal to 100,000.
Summarised from the linked release; details can be imperfect — always verify against the original source.