Mahindra to set up its largest integrated manufacturing facility in Nagpur, to exceed 5 lakh vehicles in annual production

Mahindra Group unveiled plans for its largest integrated manufacturing facility for automobiles and tractors, to be located in Maharashtra’s Nagpur. The facility is part of a Rs 15,000 crore investment across 10 years, which includes acquiring more than 2,000 acres across three locations in Maharashtra, the company announced at Advantage Vidarbha.

The state-of-the-art manufacturing complex will be developed on 1,500 acres in the Vidarbha region, accompanied by a 150-acre supplier park in Sambhajinagar. Once operational, the Nagpur facility will have an annual production capacity exceeding 500,000 vehicles and 100,000 tractors, marking Mahindra's largest integrated manufacturing operation nationwide.

Devendra Fadnavis, Chief Minister of Maharashtra, stated: “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 manufacturing hub in India.”

The Vidarbha region's strategic advantages include access to the Samruddhi Expressway, robust rail connectivity, and proximity to key domestic and export markets. The supplier park is designed to enhance the manufacturing value chain, offering improved logistics efficiency, greater localisation, and closer collaboration with partners. It will supply components to the Nagpur site as well as Mahindra’s existing facilities in Chakan and Nashik.

The new automotive facility will support Mahindra Auto’s next-generation platforms, such as the NU_IQ architecture, enabling production across multiple powertrains including internal combustion, electric, and future technologies. The plant will feature advanced automation and digital manufacturing systems, aligning with Mahindra’s focus on innovation, quality, and sustainability.

The tractor unit at Nagpur will further bolster Mahindra's leadership in the farm equipment sector, serving both domestic and export markets. This expansion is intended to meet increasing demand for tractors and reinforce the company’s presence in agricultural mechanisation.

Rajesh Jejurikar, Executive Director & CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd, called the facility “a bold step forward in Mahindra’s manufacturing journey”.

In addition to the Nagpur project, Mahindra will acquire land in the Igatpuri-Nashik region to expand product and engine capacity and support the company's Advanced Technology business, further strengthening its manufacturing base in Maharashtra.