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Why Mahindra chose Nagpur for a mega manufacturing plant

Coffee Crew  | Feb 6, 2026

Why Mahindra chose Nagpur for a mega manufacturing plant

Mahindra and Mahindra plans to build its largest integrated manufacturing facility for automobiles and tractors in Nagpur, Maharashtra. 

The deets: the main facility will spread across 1,500 acres, and will be backed by a 150-acre supplier park in Sambhajinagar (Aurangabad).

To fund this long-term push, M&M has announced a capex plan of ₹15,000 crore over the next 10 years to expand its manufacturing capacity. In total, the company will acquire 2,000 acres across three locations for these mega projects.

So why build something this big: once the Nagpur facility becomes operational in 2028, it is expected to have the capacity to produce over 5 lakh vehicles and 1 lakh tractors. 

Mahindra plans to manufacture traditional internal combustion engine (ICE) vehicles as well as electric vehicles (EVs), while also keeping room for evolving automobile technologies. 

The location choice is also strategic. Nagpur sits in the Vidarbha region, and it comes with strong connectivity advantages. The Samruddhi Expressway boosts road access, rail links add another logistics layer, and the region offers easier reach to key domestic markets as well as export routes. 

Zoom out: when it comes to autos, Maharashtra already has deep roots. Pune is widely seen as India’s biggest auto hub, with over 4,000 manufacturing units in the Pimpri-Chinchwad region alone. 

It is home to major players like Bajaj Auto, Daimler Chrysler, and Tata Motors. Nasik has its own auto muscle too, and is known for being home to one of India’s largest multi-utility vehicle manufacturers, Mahindra and Mahindra.

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