Tata Motors invests Rs 90 bn sets up Tamil Nadu plant

18 Mar 2024 CW Team

Tata Motors announced that they had entered into an agreement with the Tamil Nadu government to establish a vehicle manufacturing plant in Ranipet near Vellore, with an investment of Rs 90 billion.

According to a statement from the state government, the investment, spread over five years, is anticipated to generate more than 5,000 jobs.

This development coincides with the company's decision to divide its passenger and commercial vehicles businesses into two separate listed entities. The trucks and buses segment, along with associated investments, will be consolidated under one entity, while the other will encompass passenger cars, electric vehicles (EVs), and Jaguar Land Rover.

VinFast, an EV manufacturer based in Vietnam and a competitor of Tesla on the global stage, has commenced construction of its Rs 16,000 crore EV manufacturing facility in Thoothukudi, Tamil Nadu. This move is perceived as an effort to broaden its manufacturing presence in South India. The company already operates manufacturing plants in Dharwad (Karnataka), Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), and Sanand (Gujarat).

State Industries Minister T R B Rajaa remarked, Over the past couple of years, Tamil Nadu has become a prominent destination for investments. He added, We are not just establishing factories; we are nurturing aspirations and progressing towards a brighter, more prosperous future.

After the signing of the memorandum of understanding (MoU), teams from Guidance, the nodal agency in Tamil Nadu for investment promotion and facilitation, and Tata Motors will collaborate to advance this opportunity. The MoU was exchanged between Guidance's Managing Director and Chief Executive Officer V Vishnu and Tata Motors Group's Chief Financial Officer P B Balaji in the presence of Chief Minister M K Stalin.

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