The new factory is expected to open in 2028 and will significantly increase Mahindra’s vehicle and tractor manufacturing capacity in the medium to long term.
The 1,500-acre facility will be supported by a 150-acre vendor park in the Sambhajinagar area of Nagpur. Once fully operational it would have an annual capacity of more than 500,000 vehicles and 100,000 tractors. The supplier park will supply components to the new factory as well as Mahindra’s existing facilities in Chakan and Nashik in Maharashtra.Maharashtra Chief Minister Devendra Fadnavis said the project reflects the strength of the state’s industrial ecosystem and would generate employment and support regional development.
Rajesh Jejurikar, executive director and CEO of automotive and agriculture at Mahindra, said the facility would support next-generation vehicles and tractors, strengthening the company’s manufacturing capabilities under its ‘Make in India for the World’ strategy.
The automotive unit at the new plant will support Mahindra’s next-generation vehicle platforms, including the NU_IQ architecture, and will be capable of producing vehicles with multiple powertrains, including combustion engines, electric vehicles and future technologies. The factory will integrate advanced automation and digital manufacturing systems, the company said in a statement. The tractor will cater to both domestic demand and export markets. The expansion follows a period of strong volume growth for Mahindra, which has seen the company rise to the second position in the domestic passenger car market, supported by demand for its SUV portfolio and the launch of electric vehicles.
Mahindra’s load factor in the first half of FY26 was 97% for commercial vehicles, 93% for electric vehicles and 86% for commercial vehicles. Even the company’s tractor and agricultural machinery factories are operating at high capacity utilization rates. The factories producing tractors under the Mahindra brand are running at 86% capacity, while the Swaraj Tractor factories are running at 111%. The agricultural implements have been used for 90%.
As part of the broader expansion plan, Mahindra will also acquire land in the Igatpuri-Nashik region to expand product and engine capacity and support the growth of its advanced technology businesses. In total, the group plans to acquire over 2,000 hectares across three locations in Maharashtra.
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