Mahindra Nagpur Plant Announced: Rs 15,000 Crore Investment, Production from 2028

Mahindra Nagpur Plant: Mahindra & Mahindra has announced a major manufacturing investment in Maharashtra, signalling its long-term plans for growth across passenger vehicles, tractors, and future mobility technologies. The company will invest Rs 15,000 crore over the next decade to set up its largest integrated manufacturing facility near Nagpur, with production expected to begin in 2028.

The announcement was made on February 6, 2026, at the Advantage Vidarbha event, which focuses on attracting industrial investment to the Vidarbha region.

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Why Mahindra Is Investing in Nagpur

Nagpur’s central location is a key factor behind Mahindra’s decision. The city offers strong rail and road connectivity to multiple parts of India, making it suitable for both domestic distribution and exports. Maharashtra is already a major automotive manufacturing hub, and this investment further strengthens the state’s position.

For Mahindra, the project supports its strategy of expanding capacity while preparing for a future that includes electric vehicles and next-generation platforms alongside conventional products.

Scale and Capacity of the New Facility

The upcoming Nagpur plant will be spread across around 1,500 acres, making it Mahindra’s largest manufacturing footprint in India. Once fully operational, the facility is expected to produce over 5 lakh vehicles and 1 lakh tractors annually.

This scale is significant even by global standards and underlines Mahindra’s ambition to consolidate multiple manufacturing capabilities at a single, integrated site. The plant will handle everything from body assembly to final vehicle production.

Multiple Powertrains Under One Roof

One of the most important aspects of the Nagpur facility is its flexibility. Mahindra has confirmed that the plant will manufacture vehicles across multiple powertrains. This includes internal combustion engine vehicles, electric vehicles, and future technologies that the company is developing.

The factory will also support Mahindra’s next-generation vehicle architectures, including the NU_IQ platform. This suggests that upcoming SUVs and other products based on newer platforms could be built at Nagpur for both Indian and international markets.

Focus on Advanced Manufacturing

Mahindra has stated that the new plant will feature advanced automation and digital manufacturing systems. While detailed technical specifications are yet to be shared, this points to higher efficiency, improved quality control, and better scalability compared to older facilities.

For the Indian auto industry, this reflects a broader shift toward smart manufacturing, where factories are designed to adapt quickly to changing product mixes and technologies.

Supplier Park and Wider Ecosystem Development

Alongside the main facility, Mahindra will also develop a 150-acre supplier park in Sambhajinagar. This park will support the Nagpur plant and also supply components to Mahindra’s existing manufacturing units in Chakan and Nashik.

In addition, the company plans to acquire over 2,000 acres of land across three locations in Maharashtra, including the Igatpuri–Nashik belt. This land will be used to expand current product lines, engine manufacturing, and advanced technology businesses.

This approach highlights Mahindra’s intent to build a strong regional manufacturing ecosystem rather than a standalone factory.

What This Means for Car and Tractor Buyers

For customers, the immediate impact will not be visible, as production at the Nagpur plant will start only in 2028. However, over the long term, higher capacity and newer platforms could lead to a wider product range, faster model rollouts, and potentially more competitive pricing.

For tractor buyers, the additional capacity strengthens Mahindra’s leadership in the agricultural equipment space, especially as demand evolves with mechanisation and rural infrastructure development.

Impact on Jobs and Regional Development

Large manufacturing projects typically generate employment not only within the factory but also across the supplier network, logistics, and service sectors. The Nagpur investment is expected to create significant direct and indirect job opportunities in Vidarbha, a region that has historically lagged behind western Maharashtra in industrial development.

For the state government, this aligns with efforts to decentralise industrial growth beyond established hubs like Pune.

How This Fits Into Mahindra’s Broader Strategy

Mahindra has been steadily expanding its SUV portfolio and investing heavily in electric mobility and advanced vehicle architectures. The Nagpur plant appears to be a long-term bet designed to support this transition without disrupting existing operations at Chakan and Nashik.

By creating a facility capable of producing ICE vehicles, EVs, and future technologies together, Mahindra is hedging against uncertainty in how quickly the market shifts toward electrification.

Conclusion- Mahindra Nagpur Plant