Nagpur, Maharashtra
Mahindra & Mahindra is taking possession of the first 800 acres of land for its upcoming integrated automobile and tractor manufacturing facility at Additional Butibori, Nagpur. The greenfield facility, first announced on February 6, 2026, at the Advantage Vidarbha investment event, will eventually span approximately 1,500 acres, with production targeted to begin in 2028.
Project Scope
Once fully operational, the facility will have annual production capacity of more than 5 lakh (500,000) vehicles and 1 lakh (100,000) tractors, making it Mahindra’s largest integrated manufacturing footprint in India. The plant will support Mahindra Auto’s next-generation platforms, including the NU_IQ architecture, and is designed to manufacture vehicles across multiple powertrains: internal combustion, electric and future technologies for both domestic and export markets.
The Nagpur investment forms part of a broader ₹15,000 crore (approximately $1.6 billion) commitment by Mahindra across Maharashtra over ten years, spanning more than 800 hectares (around 2,000 acres) across three locations in the state. This includes planned additional land acquisition in the Igatpuri-Nashik region for product and engine capacity and the company’s Advanced Technology business.
Supplier Park and Skilling Centre
Alongside the main facility, Mahindra is developing a 150-acre supplier park in Sambhajinagar, which will supply components not only to the new Nagpur plant but also to Mahindra’s existing manufacturing facilities at Chakan and Nashik. The company has also announced plans for a skilling centre in Nagpur, with training programmes focused on mechanical operations, welding and painting.
Statements
Maharashtra Chief Minister Devendra Fadnavis said at the original announcement, “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 major manufacturing hub in India.”
Mahindra cited the Vidarbha region’s connectivity, including direct access via the Samruddhi Motorway, established rail links, and proximity to domestic and export markets, as key factors behind the location decision.
Industry Context
Mahindra’s Nagpur commitment is one of several large greenfield automotive manufacturing investments announced in India in the first half of 2026. In January 2026, Maruti Suzuki and the Gujarat government exchanged an investment letter for a new plant at Khoraj, Gujarat, a ₹35,000 crore investment spanning 1,750 acres, planned across four units with a combined capacity of 10 lakh (1 million) vehicles annually, with the first unit targeted to begin production in FY2029.