Tata Motors, a leading passenger and commercial vehicle maker, has announced that the group has signed a MoU (Memorandum of Understanding) with the Tamil Nadu government to set up a manufacturing plant in the state. The auto giant said in a regulatory filing that it is planning to invest INR 9,000 crore in Tamil Nadu for a period of five years. The new manufacturing plant will create around 5,000 direct and indirect employment opportunities for the masses.
The homegrown auto manufacturer made a statement that following the signing of the Memorandum of Understanding, teams from Guidance, which is the state’s nodal agency for investment facilitation and promotion, and Tata Motors Group will team up to take this opportunity forward.
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The industries minister of Tamil Nadu, T.R.B. Rajaa stated that the new facility will be developed in the Ranipet district. The Memorandum of Understanding was signed in the presence of the Chief Minister of Tamil Nadu, Thiru. M.K. Stalin. It was signed between the Managing Director and CEO of Guidance Tamil Nadu, V. Vishnu, and the CFO of the group, Mr. PB Balaji.
As of now, the brand has not announced whether it will manufacture electric vehicles or commercial vehicles at the new facility. Tata Motors owns a wide lineup of electric, commercial, and passenger vehicles. Recently, the company announced its plans to demerge passenger (incorporating EV, ICE, and JLR) and CV businesses into two distinct listed companies. In India, the homegrown auto manufacturer already owns facilities in Pantnagar, Jamshedpur, Lucknow, Dharwad, Sanand, and Pune. Tata also has manufacturing plants in the UK, Argentina, South Africa, and Thailand.
Apart from Tata Motors, several automakers in the country are all set to invest in the state, including Hyundai, Bharat Benz, Stellantis, BMW, and more. The company is expected to share more details in the coming days. The state government recently bagged a huge investment from Vinfast. The Vietnam-based firm has committed to investing INR 16,000 crore in an EV manufacturing plant located in the southern district of Thoothukudi.