Mahindra & Mahindra is moving towards taking possession of the first package of approximately 800 acres for its upcoming integrated automobile and tractor manufacturing facility at Additional Butibori in Nagpur, Maharashtra.

The greenfield facility, announced earlier this year, will be developed across 1,500 acres in the Vidarbha region.

Once fully operational, it will have an annual production capacity of more than 500,000 vehicles and 100,000 tractors, giving it a combined capacity of more than 600,000 vehicles and tractors a year. This would make it Mahindra's largest integrated manufacturing facility in India.

The Nagpur complex is being developed to manufacture automobiles and tractors across multiple powertrains and technologies. This will allow Mahindra to adjust its production mix as demand changes between internal combustion engine (ICE) and electric vehicles (EVs), while providing additional capacity for its SUV and electric vehicle businesses.

Mahindra has not disclosed the specific models or platforms to be manufactured at the Nagpur facility or the timeline for the start of production. The first package of approximately 800 acres represents more than half of the land required for the eventual 1,500-acre complex. Industry estimates put Mahindra's Chakan manufacturing complex at around 650 acres and its Nashik plant at roughly 150 acres. On this basis, the proposed Nagpur site would be more than twice the land area of Chakan and about ten times that of Nashik.

Supplier park to support three facilities

The Nagpur project will be accompanied by a 150-acre supplier park in Sambhajinagar. Components produced at the park will be supplied to the new Nagpur facility as well as Mahindra's existing manufacturing operations at Chakan and Nashik.

The arrangement will establish a production and sourcing network across Maharashtra, enabling suppliers based in Sambhajinagar to support three Mahindra manufacturing locations rather than relying on demand from a single plant.

Workforce development and skilling

Alongside the development of the facility, Mahindra is preparing the workforce and skills required to manufacture automobiles and tractors across multiple powertrains and technologies.

The company plans to draw on experienced associates from its existing manufacturing operations. Over the next two to three years, these employees will have the opportunity to participate in a selection process for roles at the Nagpur facility.

The selection process will assess technical capability, demonstrated behaviours, alignment with Mahindra's values and the ability to collaborate effectively. The process will provide the new facility with experienced personnel while supporting the development of a locally trained workforce.

Mahindra also plans to establish a skilling centre in Nagpur, with training covering areas including mechanical operations, welding and painting. The centre will focus on developing capabilities required to produce automobiles and tractors across multiple powertrains and technologies.

Mahindra has not disclosed the eventual workforce requirement or the number of jobs expected to be created by the project. The company said further details on workforce requirements, employment opportunities and associated processes will be communicated as the project progresses.

At full scale, the Nagpur complex will have capacity to manufacture more than 600,000 automobiles and tractors annually, with production covering conventional and future powertrain technologies.