Mahindra to set up Rs15,000cr auto, tractor plant in Nagpur

Nagpur: Mahindra Group on Thursday announced plans to set up its largest integrated automobile and tractor manufacturing facility in Maharashtra, committing an investment of Rs15,000 crore, with the proposed plant in Nagpur scheduled to begin production in 2028.The announcement was made at Advantage Vidarbha, the three-day flagship investment event aimed at positioning the region as an emerging industrial growth hub. The proposed facility will mark a major expansion of Mahindra's manufacturing footprint and is expected to play a key role in the group's long-term growth strategy in the automotive and farm equipment segments.
According to the company, the state-of-the-art manufacturing complex will be developed over 1,500 acre in Vidarbha and will be complemented by a 150-acre supplier park in Chhatrapati Sambhajinagar. Once fully operational, the Nagpur plant will have an annual production capacity of over 5 lakh vehicles and 1 lakh tractors, making it Mahindra's largest integrated manufacturing facility in the country.Company officials said the location offers strong strategic advantages, including road connectivity through the Samruddhi Expressway, robust rail links and access to key domestic and export markets. The supplier park at Sambhajinagar is expected to strengthen the manufacturing value chain through closer collaboration with partners, improved logistics efficiency and enhanced localisation. Components from the supplier park will cater to the new Nagpur facility as well as Mahindra's existing plants at Chakan and Nashik.The Nagpur automotive plant will support Mahindra Auto's next-generation platforms, including the NU-IQ architecture, and will be capable of manufacturing vehicles across multiple powertrains such as internal combustion engines, electric vehicles and future technologies. The facility will cater to both domestic and global markets and will feature advanced automation and digital manufacturing systems, reflecting the company's focus on innovation, quality and sustainability. The tractor manufacturing unit at the facility is expected to strengthen Mahindra's leadership in the farm equipment sector, addressing rising domestic demand and key export markets.In addition to the Vidarbha project, Mahindra said it will also acquire land in Igatpuri-Nashik region to expand its existing product and engine capacities and to support the growth of its advanced technology business. The combined investments are expected to significantly boost industrial activity and employment generation in Maharashtra, particularly in Vidarbha.