Mahindra Group (Mahindra) has announced plans to establish its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra, signalling a step in the group’s long-term growth strategy. The announcement was made at the Advantage Vidarbha event, which is designed to position Vidarbha as an industrial growth hub. The company will commit Rs150 billion (bn) over a 10 year period and develop the plant across 1500 acres with an adjacent 150 acre supplier park in Sambhajinagar. Production at the new complex is scheduled to begin in 2028.

Once fully operational, the complex will have an annual production capacity of over 0.5 million (mn) vehicles and 0.1 mn tractors, making it the group’s largest integrated manufacturing footprint in India. The supplier park will supply components to the Nagpur facility as well as to plants at Chakan and Nashik, improving logistics efficiency and localisation. The Vidarbha location was selected for its road connectivity via the Samruddhi Expressway, rail links and access to domestic and export markets. Closer partner collaboration and an evolving industrial ecosystem are expected to strengthen the manufacturing value chain.

The automotive facility will support Mahindra Auto’s next generation platforms including the NU_IQ architecture and will be capable of producing vehicles across internal combustion, electric and future powertrains for domestic and global markets. The plant will incorporate advanced automation and digital manufacturing systems to reflect the group’s focus on innovation, quality and sustainability. The tractor unit will consolidate Mahindra’s leadership in the farm equipment sector and will cater to growing domestic demand and key export markets.

In addition, the group will acquire land in the Igatpuri Nashik region to expand product and engine capacities and to support growth of its Advanced Technology business. The plan envisages acquisition of over 2000 acres across three locations to strengthen the manufacturing footprint. The investment is expected to generate significant employment and accelerate regional development in Vidarbha and areas. The announcement underlines Mahindra’s commitment to deepen manufacturing presence and to advance its vision of shaping the future of mobility and farm mechanisation.