Indian automotive major Mahindra plans to invest Rs150bn ($1.65bn) over ten years to enlarge its manufacturing base in the state of Maharashtra.
The investment includes a new automotive manufacturing facility near Nagpur.
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The planned facility in the Vidarbha region will span about 1,500 acres, alongside a 150-acre supplier park in Sambhajinagar.
When fully operational, the site is expected to produce more than five lakh vehicles and one lakh tractors annually, making it the group’s “largest” integrated manufacturing location in India.
Components from the Sambhajinagar supplier park will feed the new Nagpur operation as well as Mahindra’s existing plants in Chakan and Nashik, a move aimed at improving logistics efficiency and increasing localisation.
Mahindra cited the area’s connectivity – including access to the Samruddhi Expressway, rail links and closeness to domestic and export markets – as key factors behind the investment.
Production at the Nagpur plant is scheduled to start in 2028.
Maharashtra Chief Minister Devendra Fadnavis 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 leading manufacturing hub in India.”
The automotive unit will manufacture vehicles using internal combustion engines, electric drivetrains and future powertrain technologies, and
It will support Mahindra Auto’s “next-generation” platforms, including NU_IQ architecture.
The tractor operation is intended to supply both domestic customers and overseas markets.
Separately, the group said it plans to acquire land in the Igatpuri–Nashik corridor to increase existing product and engine capacity and to back its advanced technology activities.
Altogether, Mahindra said it would secure more than 2,000 acres across three locations in Maharashtra as part of the Rs150bn programme to strengthen its manufacturing presence in the state over the coming decade.
Mahindra & Mahindra auto and farm sector executive director & CEO Rajesh Jejurikar added: “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.”
