By WAF Think Tank
In a landmark development for India’s automotive sector, Mahindra & Mahindra has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to set up a 1,500-acre automotive and tractor manufacturing facility in Nagpur. The proposed mega investment is poised to significantly strengthen Maharashtra’s manufacturing ecosystem, generate large-scale employment, and position Nagpur as a key automotive hub in Central India.
The project marks a major step in reinforcing Maharashtra’s status as one of India’s most investment-friendly industrial states. With the automotive industry undergoing rapid transformation, the establishment of this plant is expected to create a ripple effect across the value chain — from ancillary units and MSMEs to logistics providers and service industries — thereby contributing to sustainable, long-term economic development in the Vidarbha region.
The development also reflects a long-standing vision championed by Nitin Gadkari and Devendra Fadnavis, whose continued encouragement and infrastructure-driven approach have played an important role in making Nagpur a preferred destination for industrial investments. Their focus on connectivity, policy support, and ease of doing business has steadily enhanced investor confidence in the region.
Senior leadership at Mahindra & Mahindra, including Rajesh Jejurikar, along with the endorsement of Anand Mahindra and Anish Shah, highlighted the strategic importance of the investment. Administrative coordination led by Dr. P. Anbalagan and Kaustubh Dhavase also contributed to facilitating the project efficiently.
Commenting on the development, Anuj Guglani, Founder and CEO of World Auto Forum, said, “This investment reflects years of sustained effort to showcase Nagpur as a strong industrial destination. It is a proud milestone for the region and, given Mahindra’s historic association with the city, feels like a second homecoming.”
Nagpur’s association with Mahindra dates back decades, with the well-known tractor facility at Tractor Chowk standing as a symbol of the company’s legacy in the city. The new plant represents not only expansion but also renewed confidence in Nagpur’s industrial capabilities and growth potential.
Beyond immediate economic gains, the project is expected to enhance Maharashtra’s competitiveness in automotive manufacturing, strengthen domestic production capacity, and contribute to India’s broader ambition of becoming a global automotive powerhouse. It also reflects the growing trend of large-scale investments flowing into high-potential industrial regions backed by strong policy support.
With this transformative initiative, Nagpur is poised to enter a new phase of industrial growth — welcoming Mahindra & Mahindra to what many see as its natural second home.

