Mahindra Group to invest ₹15K crore in Vidarbha manufacturing facility

Group would establish its largest integrated manufacturing facility for automobiles and tractors around the city

The Mahindra Group on Monday announced plans to establish its largest integrated manufacturing facility for automobiles and tractors in Nagpur with an investment of ₹15,000 crore over a period of 10 years.

 

The unit would have an annual capacity of 500,000 vehicles and 100,000 tractors once fully operational.

 

Production at the Nagpur facility is scheduled to begin in 2028.

 

The announcement was made at Advantage Vidarbha, an industrial conclave positioning Vidarbha as an emerging industrial growth hub on India’s manufacturing map.

 

The facility will come up over 1,500 acres in Nagpur along with a 150-acre supplier park at Sambhajinagar (erstwhile Aurangabad), around 400 km from Nagpur.

 

In addition, Mahindra will acquire around 300 acre land in the Igatpuri-Nashik region (close to Sambhajinagar and Vidarbha) to expand current product and engine capacities, as well as to support growth of its advanced technology business.

 

Mahindra is acquiring over 2,000 acres overall across three locations to further strengthen its manufacturing footprint.

 

Mahindra now has installed monthly capacity of 56,500 units for utility vehicles (UVs), around 8,000 units operational capacity for electric vehicles (EVs) and nearly 29,500 units for commercial vehicles (CVs).

 

Of this, as of H1FY26, it is already utilising 97 per cent of the UV capacity, 93 per cent of the EV capacity and 86 per cent of the CV capacity.

 

The company thus needs to expand its production capacity urgently.

 

As for tractors, where it enjoys a 43 per cent market share in India, Mahindra Tractors has 25,011 units monthly capacity of which 83.6 per cent is utilised. Its Swaraj Tractors brand has a capacity to make 16,875 units a month and is already operating at 111 per cent capacity (using multiple shifts).

 

The farm implements segment has 1,200 units monthly wheeler harvester making capacity at Pithampur, and 3,600 units loader capacity.

 

The farm implements segment is also utilising 90 per cent of its available capacity.

 

Maharashtra Chief Minister Devendra Fadnavis said this investment will generate significant employment, accelerate regional development in Vidarbha and surrounding areas.

 

Rajesh Jejurikar, executive director and chief executive officer (CEO), auto and farm sector, Mahindra and Mahindra (M&M), said it has invested ₹33,000 crore over the last 15 years. The Mahindra Group employs 90,000 people.

 

“Maharashtra is in a way home for us, where we have our first plant which started in Kandivli (Mumbai) in 1965. We have a tractor facility in Nagpur where we make over 100,000 tractors a year, a big factory in Chakan of 700 acres, as well in Nashik and Igatpuri. We are expanding and no better place to expand than the Vidarbha region,” Jejurikar said.

 

“This is a state where we have had a very good experience with people and support of the government. It’s a set of people where the will is very strong and the skill is very strong,” Jejurikar said, adding that in the last 20 years, the company had just about 0.5 per cent downtime due to labour.

 

In August, M&M had said it is adding 240,000 units per annum capacity at its Chakan plant by FY27 to meet demand and also support its upcoming models, besides, looking for greenfield sites for further expansion.

 

The company has already indicated plans to invest over ₹27,000 crore in its automotive business between FY25 and FY27.

 

Mahindra said that Vidarbha region offers “strong strategic advantages,” including excellent road connectivity via the Samruddhi Expressway, robust rail links, easy access to key domestic and export markets, and a rapidly-evolving industrial ecosystem.

 

“The supplier park at Sambhajinagar will strengthen the manufacturing value chain through closer partner collaboration, improved logistics efficiency, and enhanced localisation. It will supply components to the new Nagpur facility as well as Mahindra’s existing ones at Chakan and Nashik,” Mahindra said in a statement.

 

The automotive facility will support Mahindra Auto’s next-generation platforms, including the NU_IQ architecture, and will be capable of manufacturing vehicles across multiple powertrains — internal combustion engine (ICE), electric vehicles (EVs) and future technologies — for both domestic and global markets.

 

On August 15 M&M had unveiled four concept cars based on its new SUV platform NU_IQ that could support both ICE and EV models made for India and the world. The NU_IQ platform will underpin M&M’s next generation of SUVs which it plans to make in India for international markets like the EU, Australia, South Africa among others, banking on what it called ‘core SUVs’.

 

M&M has forayed overseas with the XUV700 and XUV3XO recently. It is also exploring exporting EVs to the UK following the finalization of the India-UK FTA.

 

NU_IQ will target the ‘white spaces’ in the automotive industry in India and internationally across Right-and-Left-Hand-Drive markets, Nalinikanth Gollagunta, CEO for Automotive Division at M&M had said then. NU_IQ has been built to support the transition to software-defined vehicles (SDVs) and it is cloud-ready for continuous digital updates for advanced driver-assistance and connected-car systems. Vision.S, Vision.T, Vision.SXT and Vision.X, are the four concept cars on the NU_IQ platform – which will fall in the sub-4 meter and 4.3 meter segments.