"This investment in the expansion of our North American facilities will provide the additional capacity needed to support the rapid growth of the Mahindra brand," Mahindra USA President Mani Iyer said in a statement.
The new facility will employ up to 100 people as it moves into full production, creating 55 new jobs, the company said.
Also read: Mahindra & Mahindra to cut output as SUV demand slows
The Southeast Mahindra Assembly and Distribution Center will be operated by Randy Topping, owner of Mahindra dealer -- Chattanooga Tractor and Equipment, it added.
"The expanded assembly and distribution center will continue to be located in Chattanooga, TN, and will support the growing southeast and midwest Mahindra dealer networks," the company said.
Commenting on the development, Southeast Mahindra President Randy Topping said: "Demand for the Mahindra product line is rapidly growing in the US and to support the growing market share, this will be a dedicated assembly and distribution facility."
Houston-based Mahindra USA is a wholly owned subsidiary of Mahindra and Mahindra Ltd and began selling tractors in the USA in 1994.
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