Tata Motors to Invest ₹9,000 Crore in New Facility in Tamil Nadu

14 Mar 2024 , 10:58 AM

On March 13, automaker Tata Motors and the Tamil Nadu government inked a memorandum of understanding (MoU) to establish a manufacturing facility at an investment of ₹9,000 Crore and generate 5,000 employment (direct and indirect).

Senior Tata Motors officials and Tamil Nadu Chief Minister MK Stalin were in Chennai to sign the Memorandum of Understanding.

“The partnership with the Tata Motors Group represents a major advancement in Tamil Nadu’s industrial development. A statement from the TN chief minister’s office stated that the manufacturing factory, which is scheduled to be built in the Ranipet area (near Vellore) and will require an investment of ₹9,000 Crores, will likely create jobs for 5,000 people over the course of the next five years.

“Tamil Nadu, the country’s second-biggest economy, is determined to reach its target of having a trillion-dollar GDP by the year 2030. It continues, “The Tamil Nadu government’s industries department is aggressively pursuing a number of initiatives to draw high-value, capital-intensive industries to the state.”

“According to the MoU, Tata Motors will establish a cutting-edge vehicle manufacturing facility, committing an investment of ₹9,000 Crore and generating up to 5,000 jobs,” stated Tamil Nadu Industries Minister TRB Rajaa. The vehicles that Tata Motors, a manufacturer of automobiles, trucks, and buses, would produce at the new site were not disclosed.

“Following the signing of this MoU, teams from Guidance, Tamil Nadu’s nodal agency for investment promotion and facilitation and Tata Motors Group will work together to take this opportunity forward,” stated Tata Motors in a filing with the stock exchange.

After Dharwad in Karnataka, this would be Tata Motors’ second facility in South India.

The foundation stone for VinFast Auto Ltd.’s electric vehicle automobile and battery production facility was set on February 25 by Tamil Nadu Chief Minister MK Stalin. The company has allocated investments of ₹16,000 Crore in the state.

The DMK government’s inaugural Global Investors Meet in January saw the Vietnam-based EV manufacturer and the Government of Tamil Nadu sign a memorandum of understanding for the project.

“TN has attracted two major automobile manufacturing investments within a span of just two months, for the first time ever,” Rajaa stated. In the last few years, Tamil Nadu has accelerated and emerged as the premier investment destination, demonstrating the commitment of our Chief Minister to promoting elite jobs for our dynamic youth and enhancing our industrial strength. We’re engineering dreams and speeding toward a better, more wealthy future, not merely constructing industries,” he declared.

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