Mahindra to invest $1.65B to expand manufacturing in India

Indian automaker Mahindra & Mahindra plans to invest about $1.65 billion over the next decade to expand its manufacturing operations in the western state of Maharashtra.

The company said the investment will support the construction of its largest integrated auto and tractor manufacturing facility in the city of Nagpur. The plant is expected to begin production in 2028, News.Az reports, citing Reuters.

Once fully operational, the new facility is projected to produce more than 500,000 vehicles and 100,000 tractors annually. The site will span roughly 1,500 acres and is designed to support multiple vehicle technologies.

Mahindra said the plant will manufacture vehicles powered by both internal combustion engines and electric drivetrains, reflecting the company’s strategy to balance traditional vehicle demand with the transition toward electrification.

The facility is expected to support production for both the Indian market and export customers, strengthening Mahindra’s global manufacturing footprint.

The investment signals long-term confidence in India’s automotive sector, which continues to grow alongside rising domestic demand and expanding export opportunities.

Automakers across India are increasing investments in manufacturing capacity and new technologies as the industry moves toward electrification while maintaining strong demand for conventional vehicles.

Mahindra’s long-term investment plan highlights how carmakers are taking a gradual approach to the transition, expanding electric vehicle capabilities while continuing to support existing product lines.

News.Az 

By Aysel Mammadzada