Mahindra to build new tractor plant
Mahindra Group is going to establish its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra, India. This marks a significant milestone in the company’s long-term growth strategy. The new state-of-the-art facility will be developed across an area of 600 hectares (1500 acres) in Vidarbha, complemented by a 60 hectare (150-acre) supplier park […]
Mahindra Group is going to establish its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra, India. This marks a significant milestone in the company’s long-term growth strategy.
The new state-of-the-art facility will be developed across an area of 600 hectares (1500 acres) in Vidarbha, complemented by a 60 hectare (150-acre) supplier park in Sambhajinagar. Once fully operational, the facility will have an annual production capacity of 100,000 tractors and 500,000 passenger cars, making it Mahindra’s largest integrated manufacturing footprint in the country.
The Vidarbha region offers strong strategic advantages, including excellent road connectivity via the Samruddhi Expressway, robust rail links, easy access to key domestic and export markets, and a rapidly evolving industrial ecosystem. The supplier park at Sambhajinagar will strengthen the manufacturing value chain through closer partner collaboration, improved logistics efficiency, and enhanced localization. It will supply components to the new Nagpur facility as well as Mahindra’s existing ones at Chakan and Nashik.
The automotive facility will support Mahindra Auto’s next-generation platforms, including the NU_IQ architecture, and will be capable of manufacturing vehicles across multiple powertrains, ICE, EV and technologies for both domestic and global markets.
Featuring advanced automation and digital manufacturing systems, the plant will reflect Mahindra’s focus on innovation, quality and sustainability. The tractor manufacturing unit will further reinforce Mahindra’s position in the farm equipment sector, catering to growing domestic demand and key export markets.
In addition, Mahindra will acquire land in the Igatpuri-Nashik region to expand current product and engine capacities, as well as to support the growth of its Advanced Technology business.
With these initiatives, Mahindra is committing a comprehensive investment of by around USD 1.6 billion over a 10-year period in Maharashtra and will acquire over 800 hectares (2000 acres) across three locations to further strengthen its manufacturing footprint.
Shri Devendra Fadnavis, Hon’ble Chief Minister of Maharashtra, 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 major manufacturing hub in India.”
Rajesh Jejurikar, Executive Director & 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 high quality 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.”
