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Mahindra Goes Mega in Maharashtra: ₹15,000 Crore Bet to Build Its Biggest Auto–Tractor Factory Yet

In a move big enough to need its own pin code, Mahindra & Mahindra Ltd. has announced plans to set up its largest integrated automobile and tractor manufacturing facility in Nagpur, Maharashtra, with a massive ₹15,000 crore investment spread over the next decade. Production at the greenfield mega-site is scheduled to begin in 2028.

The announcement was made at the Advantage Vidarbha summit, where industrial plans were large, ambitions were larger, and Mahindra arrived with what can only be described as a manufacturing mic drop.

A 1,500-Acre Manufacturing Giant (Yes, That’s Not a Typo)

Mahindra’s upcoming facility will span 1,500 acres in Vidarbha, supported by a 150-acre supplier park in Sambhajinagar. Once fully operational, the integrated complex will be capable of producing:

  • Over 5 lakh vehicles per year
  • Around 1 lakh tractors annually

That makes it Mahindra’s largest integrated manufacturing footprint in India — essentially a city where SUVs and tractors will have more roommates than most urban apartments.

Location Logic: Highways, Railways and Fast Lanes to Exports

The Vidarbha region was chosen for its strategic advantages, including:

  • Direct connectivity via the Samruddhi Expressway
  • Strong rail logistics
  • Access to domestic and export corridors
  • A fast-growing industrial ecosystem

The supplier park at Sambhajinagar will feed components not only to the new Nagpur plant but also to Mahindra’s existing facilities at Chakan and Nashik, tightening logistics loops and boosting localisation.

Built for ICE, EV and “Whatever Comes Next”

The auto manufacturing unit will support Mahindra’s next-generation vehicle platforms, including the NU_IQ architecture, and will be flexible enough to produce:

  • Internal Combustion Engine (ICE) vehicles
  • Electric Vehicles (EVs)
  • Future-ready powertrains still cooking in R&D labs

Expect high levels of automation, digital manufacturing systems, and sustainability-focused processes, aligning with Mahindra’s global ambitions and “Make in India for the World” strategy.

Alongside, the tractor division will further strengthen Mahindra’s already dominant farm equipment presence — meaning your next SUV and your next tractor might share the same birthplace.

More Expansion in Nashik–Igatpuri Belt Too

Mahindra also confirmed plans to acquire land in the Igatpuri–Nashik region to expand:

  • Engine capacity
  • Product lines
  • Advanced Technology operations

In total, the Group will acquire over 2,000 acres across three locations in Maharashtra under this broader expansion push.

Leadership Speak: Jobs, Growth and Global Scale

Maharashtra Chief Minister Devendra Fadnavis welcomed the move, saying the project strongly endorses the state’s industrial ecosystem and policy framework. He noted it is expected to:

  • Generate significant employment
  • Accelerate Vidarbha’s regional development
  • Further cement Maharashtra’s manufacturing leadership

**Rajesh Jejurikar, Executive Director & CEO – Auto and Farm Sector, Mahindra & Mahindra Ltd., said the facility marks a bold leap in manufacturing scale and flexibility, designed to support next-gen vehicles and tractors under one integrated footprint.

The Big Picture

With this project, Mahindra is doubling down on:

  • Scale manufacturing
  • Multi-powertrain readiness
  • Farm mechanisation leadership
  • Export competitiveness
  • Long-term EV and tech transition

In short: if factories had horsepower ratings, this one would already be in the performance segment — and production hasn’t even started yet.

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