Mahindra to Invest $1.65 Billion in Maharashtra for Mega Auto & Tractor Plant

Mahindra & Mahindra will invest $1.65 billion over the next decade to expand its manufacturing presence in Maharashtra, including the development of its largest integrated automobile and tractor production facility, the company announced on Friday. The plant is scheduled to begin production in 2028 and will have the capacity to manufacture over 500,000 vehicles and 100,000 tractors annually once fully operational. The facility will also produce powertrains and electric vehicles, while fostering a supplier ecosystem to support both the new plant and Mahindra’s existing manufacturing operations.

The investment comes as India strengthens its position as a global automotive manufacturing hub, with automakers scaling up capacity to meet rising domestic demand and boost exports. Mahindra, known for its popular Scorpio SUVs, has recorded robust sales growth in recent quarters, driven by strong demand for utility vehicles and tractors. In January alone, the company’s total vehicle sales rose 24% year-on-year to 104,309 units, including 63,510 utility vehicles and 38,484 tractors. For fiscal year 2026 so far, its sales are up 19% — the highest growth rate among major carmakers in the country.

The expansion aligns with a broader wave of automotive investments across India. In January, the government of Gujarat announced that Maruti Suzuki plans to invest 350 billion rupees ($3.86 billion) in a new plant with capacity of up to 1 million vehicles per year. Last year, global giants Toyota, Suzuki, and Hyundai Motor also unveiled combined investments totaling $16 billion in India, underscoring the country’s growing importance in the global automotive supply chain.

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