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

On March 13, 2024, one of the leading commercial and passenger vehicle manufacturers, Tata Motors Ltd, stated in an exchange filing about the signing of a facilitation Memorandum of Understanding (MoU) with the Government of Tamil Nadu to develop a manufacturing facility in the state. As a result of this MoU, the company will establish its second plant in Southern India.

According to the MoU, up to 5,000 jobs (direct and indirect) might be created with an investment of about ₹9,000 crore over the course of five years. Teams from Tata Motors Group and Guidance, Tamil Nadu’s lead agency for investment promotion and facilitation, will collaborate to seize this opportunity after this Memorandum of Understanding is signed.

The MoU was signed in the presence of the Chief Minister of Tamil Nadu, Thiru. M.K. Stalin and other senior executives of Tata Motors. The Minister for Industries, Dr TRB Rajaa, the Secretary of Industries, Investment Promotion & Commerce Department, Mr Arun Roy IAS, and senior officials of TATA Motors Group were also present.

“With this investment, Tamil Nadu further solidifies its position as the unrivalled automobile capital of India, reminiscent of the transformative impact of Hyundai’s investment during Kalaignar’s tenure,” Chief Minister MK Stalin said.

On March 14, 2024, the share price of Tata Motors Ltd opened at ₹968.95 and touched the day high of ₹982.00 at 1:00 PM.

With this announcement, there seems to be no more talk about Tata Motors potentially acquiring the Ford facility outside Chennai, which ceased operations two years ago.

Tata Passenger Electric Mobility, a division of Tata Motors, purchased Ford’s production plant in Sanand. The initial capacity of the greenfield plant as well as information regarding the vehicles that would be produced, whether they are ICE or electric, were not made public by Tata Motors. Nonetheless, the factory’s close proximity to Chennai’s ports allows it to serve export markets.

About Tata Motors Ltd

Tata Motors is part of a multinational conglomerate, Tata Group. It is one of the leading automobile manufacturers globally. The company offers a wide and diverse portfolio of cars, sports utility vehicles, trucks, buses and defence vehicles to the world. The company has operations in India, the UK, South Korea, South Africa, China, Brazil, Austria and Slovakia via a strong global network of subsidiaries, associate companies and Joint Ventures (JVs),

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