Mahindra's Investment: Indian automaker Mahindra & Mahindra will invest $1.65 billion over the next decade to expand its manufacturing footprint in the western state of Maharashtra, including setting up its largest integrated auto and tractor plant, the company said on Friday.

India is emerging as a key global auto manufacturing hub, with both local and foreign carmakers expanding capacity to cater to rising local demand while vying for higher exports.

Mahindra said it aims to start production in 2028, targeting an annual capacity of more than 500,000 vehicles and 100,000 tractors once fully operational.

The automaker also plans to make powertrains, electric vehicles, and set up a supplier ecosystem to support the plant and its existing manufacturing facilities.

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

The company's total vehicle sales rose 24 per cent year-on-year to 104,309 units in January, including 63,510 utility vehicles and 38,484 tractors. So far in fiscal year 2026, its sales are up 19 per cent, the most among major carmakers in the country.

In January, the government of Gujarat state said Maruti Suzuki will invest 350 billion rupees ($3.86 billion)in a plant it plans to set up in the state, adding production capacity of up to 1 million vehicles a year for the automaker.

Last year, Toyota, the world's largest carmaker, and Suzuki, the leader in the Indian market with almost a 40 per cent share and Hyundai Motor, separately announced investments totalling $16 billion in the country.