Mahindra to set up largest integrated auto, tractor plant in Nagpur; Rs 15,000 crore investment planned across Maharashtra

Mahindra is the largest manufacturer of SUVs and tractors in India by volume.

• Mahindra to set up its largest auto and tractor plant in Nagpur, Maharashtra.
• Nagpur facility to begin production in 2028, spanning 1,500 acres.
• Rs 15,000 crore investment planned in Maharashtra over 10 years.

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Mahindra Group today announced plans to establish its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra. The project forms part of the group's broader plan to invest Rs 15,000 crore in the state over 10 years.

The Nagpur facility is scheduled to begin production in 2028.

The integrated manufacturing complex will be developed across 1,500 acres in the Vidarbha region. It will be supported by a 150-acre supplier park in Sambhajinagar, which will supply components to the new Nagpur facility as well as Mahindra's existing manufacturing plants in Chakan and Nashik.

Once fully operational, the Nagpur plant will have an annual production capacity of over 5 lakh vehicles and 1 lakh tractors. According to the company, this will make it Mahindra's largest integrated manufacturing footprint in the country.

Mahindra is India's largest SUV and tractor manufacturer by volume. In the domestic market, its SUV sales rose 19% year-on-year to 5,39,986 units in April–January FY26, while tractor volumes increased 23% year-on-year to 4,30,374 units during the same period.

Mahindra said the Vidarbha region offers strategic advantages such as connectivity through the Samruddhi Expressway, strong rail links, access to key domestic and export markets and a growing industrial ecosystem. The supplier park is expected to strengthen localisation and improve logistics efficiency through closer collaboration with partners.

The automotive manufacturing unit at Nagpur will support Mahindra Auto's next-generation platforms, including the NU_IQ architecture. It will be capable of manufacturing vehicles across multiple powertrains, including internal combustion engine (ICE), electric vehicle (EV) and future technologies, for both domestic and global markets. The facility will also feature advanced automation and digital manufacturing systems.

The NU_IQ platform and four concept SUVs based on it, namely Vision.S, Vision.T, Vision.SXT and Vision.X, were unveiled in August 2025. Their production for the Indian and global markets will initially start in 2027 at Mahindra's Chakan plant. The SUVs will be 3,990mm to 4,320mm in length. The NU_IQ platform is capable of accommodating front-wheel-drive, all-wheel-drive, right-hand-drive and left-hand-drive layouts.

The integrated complex will include a tractor manufacturing unit, aimed at supporting Mahindra's farm equipment business and catering to domestic demand as well as key export markets.

Separately, Mahindra said it will acquire land in the Igatpuri–Nashik region to expand existing product and engine capacities and to support the growth of its Advanced Technology business.

Taken together, the Nagpur facility, the supplier park in Sambhajinagar and expansion plans in the Igatpuri-Nashik region form part of Mahindra's Rs 15,000 crore investment commitment in Maharashtra. The company said it will acquire more than 2,000 acres of land across these three locations.

Commenting on the announcement, Maharashtra Chief Minister Devendra Fadnavis said: "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 announcement was made at Advantage Vidarbha, a three-day event aimed at projecting the Vidarbha region as an emerging industrial growth hub.

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said: "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 partnership with the state of Maharashtra through this transformative investment."