Mahindra & Mahindra Ltd (M&M) has announced plans to set up its largest integrated automobile and tractor manufacturing facility in Maharashtra, committing an investment of ₹15,000 crore over a 10-year period as it looks to expand capacity and strengthen its domestic manufacturing base.

The proposed facility will be developed on around 1,500 acres in Vidarbha, with a separate 150-acre supplier park planned in Sambhajinagar. The Nagpur plant is expected to commence production in 2028 and, once fully operational, will have an annual capacity of over 5 lakh vehicles and 1 lakh tractors, making it Mahindra’s largest manufacturing complex in the country.

Nagpur at the centre of expansion push

The project was announced at the Advantage Vidarbha event, part of the Maharashtra government’s push to position the region as an emerging industrial hub. Mahindra cited connectivity via the Samruddhi Expressway, rail infrastructure and access to key domestic and export markets as strategic advantages for the Vidarbha location.

Rajesh Jejurikar, Executive Director and CEO of Mahindra’s Auto and Farm Sector, said the facility would play a central role in the company’s next phase of manufacturing expansion. He noted that the integrated footprint is designed to support Mahindra’s next-generation vehicles and tractors, combining scale, flexibility and advanced manufacturing capabilities under one roof while strengthening its “Make in India for the World” strategy.

Multi-powertrain auto plant, expanded tractor capacity

The automotive unit at Nagpur will support Mahindra’s next-generation vehicle platforms, including the NU_IQ architecture, and will be capable of manufacturing vehicles across internal combustion engine, electric and future powertrains for both domestic and export markets.

The tractor manufacturing facility will further scale Mahindra’s farm equipment operations, catering to rising domestic demand while strengthening exports.

Supplier Park and Nashik expansion

The supplier park planned in Sambhajinagar will supply components to the Nagpur plant as well as Mahindra’s existing facilities in Chakan and Nashik, helping improve logistics efficiency and localisation across its manufacturing network.

Separately, Mahindra said it will acquire land in the Igatpuri–Nashik region to expand product and engine capacities and support the growth of its advanced technology businesses. Overall, the group plans to acquire more than 2,000 acres across three locations in Maharashtra as part of the investment programme.

Maharashtra Chief Minister Devendra Fadnavis said the project reflected the state’s industrial ecosystem and policy framework and would support regional development and employment generation.