Mahindra & Mahindra announced on February 6th, 2026, that it would establish its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra, with an investment of Rs. 150 billion (US$ 1.65 billion) over ten years.

The announcement was made at Advantage Vidarbha, a three-day event focused on promoting the region as an industrial development location. The facility will be developed across 1,500 acres in Vidarbha, with a 150-acre supplier park in Sambhajinagar.

Once operational in 2028, the plant will have an annual production capacity of more than 500,000 vehicles and 100,000 tractors, making it the company's largest integrated manufacturing facility in India.

The automotive facility will support Mahindra's next-generation platforms, including the NU_IQ architecture, and will manufacture vehicles across multiple powertrains - internal combustion engine, electric vehicle, and future technologies - for domestic and international markets. The plant will incorporate automation and digital manufacturing systems.

Mahindra will also acquire land in the Igatpuri-Nashik region to expand existing product and engine capacities and to support the expansion of its Advanced Technology business.

The company plans to acquire more than 2,000 acres across three locations in Maharashtra.

Shri Devendra Fadnavis, Chief Minister of Maharashtra, said that Mahindra's decision to set up an integrated automobile and tractor manufacturing facility in the state reflected the availability of industrial infrastructure and policy support.

He stated that the investment is expected to create employment and contribute to industrial activity in Vidarbha and nearby regions.

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said that the facility is intended to support the production of future vehicle and tractor models and to consolidate manufacturing operations at a single location.

He further added that the project is aligned with the company's manufacturing and export strategy and its ongoing engagement with the Maharashtra government.

The Vidarbha region provides road connectivity through the Samruddhi Expressway, rail links, access to domestic and export markets, and an existing industrial base. The supplier park at Sambhajinagar will provide components to the Nagpur facility as well as to Mahindra's existing plants in Chakan and Nashik.

Founded in 1945, the Mahindra Group employs 324,000 people across more than 100 countries and operates businesses in farm equipment, utility vehicles, information technology, and financial services. The company is the largest tractor manufacturer globally by volume.