Tata Motors to invest Rs9,000 crore in new Tamil Nadu facility

Tata Motors has proposed to invest Rs9,000 crore for setting up a new automobile manufacturing facility in Tamil Nadu over a 5-year period.

Tata Motors, on Wednesday, signed a memorandum of understanding with the Tamil Nadu government for the new facility, to be located in Ranipet district, state industries minister T R B Rajaa said.

Tata Motors said the new factory, using cutting-edge technology, would generate 5,000 new jobs, direct and indirect.

Rajaa said this the second major investment in automobile sector in the state after the Rs16,000 crore for an electric vehicle manufacturing facility by Vietnam based Vinfast in Thoothukudi district.

Tata Motors, a leader in India’s commercial vehicles market, and among the top three in the passenger vehicles market, marked a milestone in automobile manufacturing by rolling out the millionth car from its state-of-the-art facility in Sanand, Gujarat. 

Tata Motors said it would work with Guidance, Tamil Nadu’s nodal agency for investment promotion and facilitation, to take forward the opportunity.

Tata Motorts is in the process of hiving off its electric vehicles manufacturing business into a separate entity and it is not known whether the new Tamil Nadu facility is meant for that.

Early this month, Tata Motors Limited (TML) proposed demerger of the company into two separate listed companies - one housing the commercial vehicles business and the other the passenger vehicles businesses, which include PV, EV, JLR and its related investments.