Mahindra to invest Rs 15,000 crore in largest integrated auto, tractor plant in Maharashtra

Mumbai: Mahindra Group on Thursday said it would invest Rs 15,000 crore over the next decade in Nagpur, Maharashtra to build its first integrated automobile and tractor manufacturing facility in the country.

Mahindra currently operates six plants for automobile manufacturing and an additional nine for tractor and farm machinery across various states.

The new plant is expected to open in 2028 and will significantly boost Mahindra’s production capacity for vehicles and tractors in the medium to long term.


The 1,500-acre facility will be supported by a 150-acre supplier park in Sambhajinagar area of Nagpur. Once fully operational, it would have an annual capacity of more than 500,000 vehicles and 100,000 tractors. The supplier park will provide components to the new plant as well as to Mahindra’s existing facilities at Chakan and Nashik in Maharashtra.

Maharashtra chief minister Devendra Fadnavis said the project reflects the strength of the state’s industrial ecosystem and that it would generate employment and support regional development.

Rajesh Jejurikar, executive director and CEO, auto and farm sector at Mahindra said the facility would support next-generation vehicles and tractors, strengthening the company’s manufacturing capabilities under its “Make in India for the World” strategy.

The automotive unit at the new facility will support Mahindra’s next-generation vehicle platforms, including the NU_IQ architecture, and will be capable of manufacturing vehicles across multiple powertrains, including internal combustion engines, electric vehicles and future technologies. The plant will incorporate advanced automation and digital manufacturing systems, the company said in a statement. The tractor unit will cater to domestic demand as well as export markets.

The expansion follows a period of strong volume growth for Mahindra, during which it moved to the second position in the domestic passenger vehicle market, supported by demand for its SUV portfolio and electric vehicle launches.

Mahindra's capacity utilisation in the first half of FY26 stood at 97% for utility vehicles, 93% for EVs, and 86% for commercial vehicles. Even the company's tractor and farm machinery plants are running at high capacity utilisation levels. The plants producing tractors under the Mahindra brand are running at 86% capacity while Swaraj Tractor plants are operating at 111%. The farm implement plants are at 90% utilisation rate.

As part of the broader expansion plan, Mahindra will also acquire land in the Igatpuri–Nashik region to expand product and engine capacities and support growth of its advanced technology businesses. In total, the group plans to acquire more than 2,000 acres across three locations in Maharashtra.