The new plant will create 250 new jobs in the US.
"It is pretty rare and extraordinary," said Michigan Lieutenant Governor Brian Calley at the Mahindra automotive plant launch event in Detroit metropolitan area.
"You are an important and vital part of the resurgence of Detroit," he told Mahindra employees and top officials including its head Anand Mahindra.
Mahindra said that his company is committed to growing the Mahindra brand in North America and Michigan.
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In few weeks from now, the new facility will produce an off-highway vehicle which will extend Mahindra's current position in this growing segment.
Designed and engineered by Mahindra Automotive North America (MANA), the vehicle promises to be unlike anything currently on the market, he said.
"This expansion represents a milestone for us and for Michigan. We started this operation with seven people four years ago -- to be crossing the 250 mark is a testament to the hard work of our employees and what this region has to offer in terms of top automotive talent," said MANA president and CEO Richard Haas at the inaugural event.
In addition, MANA will continue to provide Metro Detroit- based engineering support for new vehicle platform development for India and global markets.
"It is a great day for my district and my State as this is the first automotive manufacturing facility in 25 years. This comeback is real and exciting," said Congressman Dave Trott adding that Southeast Michigan is the birthplace of automotive industry.
"This illustrates the strong partnership between the Us and India," said Tom Vajda, the Acting Assistant Secretary of State for South and Central Asia as he welcomed the Mahindra automotive plan in Detroit region.