Mahindra Group has unveiled ambitious plans to establish its largest-ever integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra, underscoring the conglomerate’s long-term commitment to strengthening India’s manufacturing ecosystem. The announcement represents a major strategic milestone for the Group and reinforces Maharashtra’s role as a critical hub in India’s industrial and automotive landscape.
The project was formally announced during Advantage Vidarbha, a three-day flagship investment event designed to showcase Vidarbha as a fast-emerging industrial destination. The initiative aligns with broader national priorities around industrial growth, infrastructure development, and the “Make in India” vision, while also positioning Vidarbha as a new growth engine within Maharashtra.
A Landmark Manufacturing Investment in Vidarbha
The proposed manufacturing complex will be developed across 1,500 acres in the Vidarbha region, making it one of the most expansive industrial projects undertaken by Mahindra to date. Complementing this will be a 150-acre supplier park in Sambhajinagar, aimed at strengthening the regional automotive supply chain and enhancing operational efficiency through closer collaboration with key component manufacturers.
Once fully operational, the Nagpur facility is expected to deliver an annual production capacity exceeding 500,000 vehicles and 100,000 tractors, making it Mahindra’s largest integrated manufacturing footprint in India. The scale of the project reflects the company’s confidence in long-term demand growth across both the automotive and farm equipment sectors, domestically as well as internationally.
Strategic Location and Infrastructure Advantages
Vidarbha’s selection as the site for Mahindra’s flagship facility is rooted in its growing strategic importance. The region offers strong multimodal connectivity, including access to the Samruddhi Mahamarg (Expressway), which links Nagpur to Mumbai and significantly reduces transit times. Robust rail infrastructure further enhances freight movement, while proximity to major ports and logistics corridors supports efficient access to export markets.
In recent years, Vidarbha has witnessed accelerating industrial development, supported by proactive state policies, improving infrastructure, and increasing investor interest. Mahindra’s decision is expected to act as a catalyst for further industrial activity, attracting suppliers, logistics providers, and ancillary businesses to the region.
The supplier park in Sambhajinagar will play a crucial role in this ecosystem. Designed to support both the new Nagpur plant and Mahindra’s existing facilities in Chakan and Nashik, the park will enable improved localization, reduced logistics costs, and faster turnaround times. It will also foster deeper integration between Mahindra and its supplier partners, strengthening resilience across the value chain.
Supporting Next-Generation Automotive Platforms
The automotive manufacturing unit at the Nagpur complex will be equipped to support Mahindra Auto’s next-generation vehicle platforms, including the advanced NU_IQ architecture. This flexible architecture is designed to accommodate a wide range of vehicle formats and propulsion technologies, enabling Mahindra to respond quickly to evolving market trends and regulatory requirements.
Importantly, the facility will be capable of producing vehicles powered by internal combustion engines (ICE), electric powertrains (EVs), and future propulsion technologies. This multi-energy approach reflects Mahindra’s strategic focus on balancing near-term market realities with long-term sustainability goals, ensuring readiness for a rapidly changing mobility landscape.
The plant will serve both domestic and global markets, reinforcing Mahindra’s ambitions to expand its international footprint while strengthening India’s role as a global manufacturing base.
Advanced Manufacturing, Automation, and Sustainability
Designed as a state-of-the-art smart factory, the Nagpur facility will incorporate advanced automation, digital manufacturing systems, and data-driven quality controls. Industry 4.0 technologies will be embedded across production lines to improve efficiency, enhance consistency, and support predictive maintenance.
Sustainability will be a core pillar of the facility’s design and operations. Mahindra has consistently emphasized environmental stewardship across its manufacturing network, and the new complex is expected to integrate energy-efficient processes, water conservation measures, waste reduction initiatives, and increased use of renewable energy sources.
By combining scale with smart manufacturing and sustainable practices, the facility aims to set new benchmarks for automotive and tractor production in India.
Strengthening Leadership in Farm Equipment
Alongside automotive production, the integrated complex will house a dedicated tractor manufacturing unit, further reinforcing Mahindra’s leadership position in the farm equipment sector. As one of the world’s largest tractor manufacturers, Mahindra continues to see strong growth opportunities driven by mechanization trends, rising farm productivity needs, and increasing exports.
The new tractor facility will cater to both domestic demand and key international markets, supporting Mahindra’s efforts to expand its global presence in agricultural machinery. By colocating automotive and tractor manufacturing within a single integrated footprint, Mahindra expects to benefit from shared infrastructure, optimized logistics, and operational synergies.
Expansion Plans in Nashik and Advanced Technology Focus
Beyond Vidarbha and Sambhajinagar, Mahindra also plans to acquire additional land in the Igatpuri–Nashik region. This expansion will support increased product and engine capacities at existing facilities while enabling the growth of Mahindra’s Advanced Technology business.
These investments highlight the company’s commitment to future-ready technologies, including electrification, connected systems, and advanced powertrain development. By strengthening its capabilities across multiple locations in Maharashtra, Mahindra is building a robust, scalable manufacturing network designed to support long-term innovation and growth.
₹15,000 Crore Commitment Over a Decade
Collectively, these initiatives represent a comprehensive investment of ₹15,000 crore over a 10-year period in Maharashtra. As part of this commitment, Mahindra will acquire more than 2,000 acres across three locations, significantly expanding its manufacturing footprint in the state.
The scale and duration of the investment underscore Mahindra’s long-term confidence in Maharashtra’s industrial environment and its belief in India’s potential as a global manufacturing powerhouse.
Government Support and Regional Impact
The announcement was welcomed by the Maharashtra government as a major boost to regional development. Shri Devendra Fadnavis, Hon’ble Chief Minister of Maharashtra, described Mahindra’s decision as a strong validation of the state’s industrial ecosystem and progressive policy framework.
He noted that the project is expected to generate substantial employment opportunities, stimulate ancillary industries, and accelerate economic development across Vidarbha and surrounding regions. The investment also strengthens Maharashtra’s position as one of India’s leading manufacturing states, particularly in the automotive and farm equipment sectors.
Mahindra’s Vision for the Future
Commenting on the announcement, Rajesh Jejurikar, Executive Director & CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd., emphasized the transformative nature of the project. He described the new facility as a bold step forward in Mahindra’s manufacturing journey, bringing together scale, flexibility, and advanced technology within a single integrated footprint.
According to Jejurikar, the facility will significantly enhance Mahindra’s ability to deliver world-class vehicles and tractors while remaining firmly aligned with the company’s commitment to “Make in India for the World.” He also highlighted Mahindra’s pride in deepening its partnership with the state of Maharashtra through what he termed a truly transformative investment.
Shaping the Future of Mobility and Agriculture
With this landmark manufacturing complex, Mahindra continues to accelerate its vision of shaping the future of mobility and farm mechanization. By combining advanced technology, sustainable manufacturing, and large-scale capacity within a strategically located ecosystem, the Group is positioning itself to compete more effectively on the global stage.
At the same time, the investment delivers meaningful economic and social benefits, contributing to regional development, employment generation, and India’s broader industrial growth story. As Mahindra expands its manufacturing capabilities in Maharashtra, the project stands as a clear signal of confidence in India’s future as a center for innovation-driven, globally competitive manufacturing.
Source Link:https://www.mahindra.com/
