Mahindra Gujarat Tractor Limited, a part of the US $16.2 billion Mahindra Group, was incorporated in the year 1978 under the name Gujarat Tractor Corporation Limited in the State of Gujarat. Gujarat Tractor Corporation Limited which took over Hindustan Tractors Limited remained a wholly owned subsidiary of the Government of Gujarat till 1999.

Under disinvestment plan of the Government, in 1999 and 2000, Mahindra Group acquired 60% equity stake in Gujarat Tractor Corporation Limited and thereafter the company was rechristened as Mahindra Gujarat Tractor Limited in 2000.