Mahindra plans $1.65 billion manufacturing expansion in Maharashtra

Mahindra & Mahindra on Friday announced plans to invest $1.65 billion over the next decade to expand its manufacturing footprint in Maharashtra, underlining its long-term commitment to domestic production.

The investment includes setting up the company’s largest integrated automobile and tractor manufacturing plant. Mahindra said the facility is expected to begin production in 2028.

Once fully operational, the plant will have an annual production capacity of more than 500,000 vehicles and 100,000 tractors, significantly adding to the automaker’s existing output.

Focus on EVs and localisation

In addition to vehicle assembly, Mahindra plans to manufacture powertrains and electric vehicles at the new site. The company also intends to develop a local supplier ecosystem to support the upcoming plant as well as its existing manufacturing facilities.

The move aligns with Mahindra’s broader strategy to strengthen localisation, reduce supply chain dependence and support its growing electric vehicle portfolio.

Strong sales performance

The Scorpio maker has reported strong sales momentum in recent quarters, driven by demand for its sport-utility vehicles and tractors.

In January, Mahindra’s total vehicle sales rose 24 per cent year-on-year to 104,309 units. This included sales of 63,510 utility vehicles and 38,484 tractors. So far in fiscal year 2026, the company’s sales are up 19 per cent, the highest growth rate among major carmakers in India.

India draws auto investments

Mahindra’s announcement comes as India continues to attract large investments from both domestic and global automakers, positioning itself as a key global manufacturing hub.

In January, the Gujarat government said Maruti Suzuki will invest 350 billion rupees ($3.86 billion) to set up a new plant with production capacity of up to one million vehicles a year.

Last year, Toyota Motor, Suzuki Motor and Hyundai Motor also announced combined investments of about $16 billion in the country.

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