Mahindra Bets ₹15,000 Crore on Future Mobility With Mega Nagpur Manufacturing Hub

Mahindra Group announces a ₹15,000 crore investment to build its largest integrated manufacturing plant near Nagpur, producing ICE, EV, and hybrid vehicles on the NU_IQ platform from 2028.

Feb 6, 2026 - 18:40
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Mahindra Bets ₹15,000 Crore on Future Mobility With Mega Nagpur Manufacturing Hub

Mahindra Group has declared investing 15,000 crore in a ten-year period to establish its biggest integrated manufacturing plant near Nagpur, which is among the most conclusive industrial wagering in the Indian automobile shifting age. The plant will cover 1,500 acres and produce Internal combustion engine (ICE), Electric vehicles (EVs), hybrids, and high-tech tractors on one modular ecosystem. Based on the next-generation NU_IQ platform of Mahindra, the plant will cater to the local and foreign markets, the production process of which, will start in 2028, after the initial launch of the SUV in 2027.

A Manufacturing Reset: Nagpur, Why, Why now

Mahindra has not just chosen Nagpur as its location because it is symbolic. The region is centrally located and well connected with rail-road systems, and is close to suppliers concentrations, making it economically viable to conduct national and export logistics. The 15,000 -circa investment will cover a fully-fledged facility: body shop, battery assembly, powertrain, and final product vehicles lines where ICEs and EVs could be assembled side by side. This two-part strategy indicates a realistic interpretation of the market on the part of Mahindra: EV sales are growing at a rapid pace, but the ICE market will still be there until 2030s. Mahindra avoids making the mistake of putting all its money in one propulsion bet, thereby minimising transition risk when scaling. The plant is also consistent with the push of the industrial policy in Maharashtra, which guarantees the regulatory high speed, land availability, and the long-term capacity expansion without any relocation restriction.

Mahindra Vision S

NU_IQ Platform: The Power of One Architecture to drive many Futures

The NU_IQ platform, a monocoque multi energy architecture based on flexibility over compromise, forms the heart of the Nagpur project. In favour of ICE, hybrid, flex-fuel and pure EV powertrains, NU_IQ enables front-wheel drive and all-wheel drive on the same base. The design of the flat floor is unique to platforms compatible with ICE, and it is very spacious in its cabin without making any concessions to batteries. Cars between 3.9 to 4.5 metres will have same wheelbase of 2.65 metres and a similar interior ratio will be ensured across car models. Such features as 5-link rear suspension, variable-ratio steering, active dampers, and DAVINCI damper technology bring Mahindra SUVs nearer to the world standards, not only local competitors.

Between Concepts and Capacity: What follows

The implementation plan is a gradual and planned one. Mahindra will launch with concept displays, first NU_IQ based SUV in 2027, and full-scale production in Nagpur in 2028. The platform will support 26 new launches and facelifts in the course of five years, with four lines of SUVs (Vision S, X, T, and SXT). Most importantly, the investment has the objective of supporting the Mahindra ambition of 20-30% EV penetration by 2030, preparation of capacity to reach one million EVs per year. Born-electric models such as the XEV 9e and BE 6e are an indication, but the power base is in creating optionality in the market, i.e. Mahindra can adapt to market demand, and not pursue it.