Tata Motors Announces Rs 9,000 Crore Investment in New Tamil Nadu Plant

Tata Motors is moving forward with its plans for expansion by revealing its intention to establish a vehicle manufacturing facility in Tamil Nadu. Today, the Tata Motors Group formalized this commitment by signing a memorandum of understanding (MoU) with the Tamil Nadu government. The exchange of the MoU took place in the presence of Tamil Nadu Chief Minister M.K. Stalin, along with V Vishnu, IAS, Managing Director & CEO of Guidance, and PB Balaji, Group CFO of Tata Motors.

Tata Motors Latest Investment Plan

Tata Motors unveiled its ambitious plan to inject Rs 9,000 crore into a new manufacturing facility over the next five years, with the potential to generate up to 5,000 job opportunities, as stated by the company. Following the signing of the MoU, collaborative efforts between Guidance, Tamil Nadu’s investment promotion and facilitation agency, and Tata Motors Group will drive forward this initiative, according to the company’s announcement.

At present, the Tata Motors Group has not disclosed whether the new plant will focus on manufacturing passenger vehicles or commercial vehicles. The company recently unveiled a demerger strategy, outlining plans to split Tata Motors Ltd into two distinct listed entities. The first entity will oversee the commercial vehicles (CV) business and its associated investments, while the second entity will encompass the passenger vehicles (PV) segment, including PV, EV, and JLR (formerly Jaguar Land Rover), along with their respective investments.

In early 2024, Tata Motors commenced production of its combustion engine vehicles at the erstwhile Ford India plant in Sanand, Gujarat. The plant was acquired by Tata Motors’ EV subsidiary last year. Now, Tata Motors plans to utilize this facility for manufacturing its next generation of electric vehicles.

In 2024, Tamil Nadu secured its second major investment from an automaker, following Vietnam’s Vinfast commitment to establish an electric vehicle and battery manufacturing facility in the state. Vinfast pledged an initial investment of USD 500 million (approximately Rs 4,160 crore) for the first phase over five years. This comes as Tata Motors announces its plans to invest in a new manufacturing facility in Tamil Nadu.

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