Mahindra revs up with Rs 15,000 cr investment in new manufacturing unit in Maharashtra

Mahindra and Mahindra (M&M) on Friday announced a Rs 15,000 crore investment over a decade to set up its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra.

The unit, aimed to expand its manufacturing footprint, will be developed across an area of 1500 acres in Vidarbha, complemented by a 150-acre supplier park in Sambhajinagar. Mahindra aims to start production in 2028.

Shares of Mahindra & Mahindra (M&M) were trading at Rs 3565.05 per script, reporting a decline of Rs 6.35 (-0.18%) as on 14:03 on Friday on BSE.


Mahindra will acquire land in the Igatpuri-Nashik region to expand its current product and engine capacities, as well as to support the growth of its Advanced Technology business. Under the Rs 15,000 crore plan, the company will acquire over 2000 acres across three locations to further strengthen its manufacturing footprint.

The supplier park at Sambhajinagar will strengthen the manufacturing value chain through closer partner collaboration, improved logistics efficiency, and enhanced localisation, Mahindra said in a release. It will supply components to the new Nagpur facility as well as Mahindra’s existing units at Chakan and Nashik.

The automaker announced the investment at Advantage Vidarbha, a three-day flagship event positioning Vidarbha as an emerging industrial growth hub on India’s manufacturing map.

Once fully operational, the facility will have an annual production capacity of over 5 lakh vehicles and 1 lakh tractors, supporting Mahindra Auto's next-generation platforms, including the NU_IQ architecture. The unit will be capable of manufacturing vehicles across multiple powertrains—ICE, Electric Vehicles (EVs) and future technologies—for both domestic and global markets.

The world's largest tractor manufacturer by volume is set to reinforce its leadership in the farm equipment sector with the new facility in Nagpur.

"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," Rajesh Jejurikar, Executive Director & CEO, Auto and Farm Sector of M&M, said, adding that the company is proud to deepen its partnership with the state of Maharashtra through this transformative investment.