Mahindra To Build Its Largest Auto And Tractor Manufacturing Plant In Maharashtra - Details

The Mahindra Group has announced a major expansion of its manufacturing footprint in India with plans to set up its largest integrated automobile and tractor manufacturing facility in Nagpur, Maharashtra. The announcement was made on February 6, 2026, during the Advantage Vidarbha event, which is a flagship initiative aimed at showcasing the Vidarbha region as a fast-emerging industrial hub.

This project will see Mahindra invest Rs 15,000 crore over the next 10 years, underscoring the group’s long-term confidence in Maharashtra as a manufacturing powerhouse. The new facility will come up on a 1,500-acre site in Vidarbha, while a 150-acre supplier park will be developed in Sambhajinagar to support the main plant with components and logistics.

Once fully operational, the Nagpur facility will be capable of producing over 5 lakh vehicles and 1 lakh tractors annually. Production is expected to begin in 2028 and the plant will play a critical role in supporting Mahindra’s future growth in both the automotive and farm equipment sectors.

One of the key reasons behind choosing Vidarbha is its strategic

location as the region benefits from strong road connectivity through the Samruddhi Expressway, reliable rail links and easy access to both domestic and export markets. The supplier park at Sambhajinagar will further strengthen Mahindra’s supply chain by improving localisation, reducing logistics costs, and enabling closer collaboration with component manufacturers. This park will not only serve the new Nagpur facility but also support Mahindra’s existing plants in Chakan and Nashik.

The automotive section of the new plant will be future-ready and it will support Mahindra Auto’s next-generation platforms, including the NU_IQ architecture and will be flexible enough to manufacture vehicles with internal combustion engines (ICE), electric powertrains (EVs) and future technologies. Advanced automation, digital manufacturing systems and a strong focus on sustainability will be central to the facility’s design. Alongside this, the tractor manufacturing unit will further strengthen Mahindra’s leadership in the farm equipment space.

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In addition to the Nagpur project, Mahindra will also acquire land in the Igatpuri-Nashik region to expand engine and product capacities and support the growth of its advanced technology businesses. Overall, the group will acquire over 2,000 acres across three locations in Maharashtra as part of this expansion.

Devendra Fadnavis, Chief Minister of Maharashtra, said the project reflects the strength of the state’s industrial ecosystem and will generate significant employment while accelerating regional development in Vidarbha.

Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) at Mahindra & Mahindra Ltd., said the facility represents a bold step in Mahindra’s manufacturing journey and reinforces the group’s commitment to ‘Make in India for the World’.

With this landmark investment, Mahindra continues to shape the future of mobility and farm mechanisation while contributing meaningfully to India’s industrial and economic growth.