Mahindra To Build ₹15,000 Crore Nagpur Auto And Tractor Plant, Add 1 Lakh Tractors Capacity

The Mahindra Group will set up an integrated automobile and tractor manufacturing plant near Nagpur in Maharashtra, backed by a planned investment of ₹15,000 crore in the state over 10 years. The new project will come up on about 1,500 acres in Vidarbha and is planned to start production in 2028.

Once fully operational, the Nagpur facility is planned to produce more than 5 lakh vehicles and 1 lakh tractors a year, according to the company’s announcement. This will make it Mahindra’s largest single manufacturing site for its auto and farm businesses in India. The project was announced at Advantage Vidarbha, an industry event that aims to draw investment to the region.

Mahindra will also support the new plant with a 150-acre supplier park at Sambhajinagar. The park is expected to feed parts to the Nagpur unit as well as Mahindra’s existing auto plants at Chakan and Nashik in Maharashtra. The company said the Nagpur facility will build vehicles on new platforms and across internal combustion, electric and other powertrains for the domestic market and for exports.

Alongside the Vidarbha project, Mahindra plans to acquire land in the Igatpuri-Nashik belt to expand product and engine capacity and to support its advanced technology operations. With the land purchases in Nagpur, Sambhajinagar and the Igatpuri-Nashik region, the group expects to secure over 2,000 acres in Maharashtra as part of this investment plan.

The Maharashtra government has linked the Mahindra Nagpur auto and tractor plant to its efforts to push industrial growth in Vidarbha. The new unit is expected to draw suppliers and allied services to the area over time. The company has not given employment numbers, but has said the overall investment will increase its manufacturing base in the state.

The project also adds a new node to Mahindra’s tractor manufacturing network in India. Mahindra tractors are currently produced at plants in Mumbai, Nagpur, Mohali, Jaipur, Rudrapur, Zaheerabad, Rajkot, Vadodara and Majri near Kurali, besides facilities overseas. These tractor factories together give the company the capacity to build about 1.5 lakh tractors a year. 

With the planned output of 1 lakh tractors a year from the Nagpur complex, Mahindra’s total installed tractor capacity in India will move towards about 2.5 lakh units annually, subject to ramp-up. The extra capacity is aimed at meeting demand in the domestic market and in export markets where Mahindra has been expanding its farm equipment presence.