Tata Motors to invest ₹9,000 crore in first Tamil Nadu plant

Tata Motors, a prominent automobile manufacturer, is set to invest ₹9,000 crore in constructing its inaugural plant in Tamil Nadu, as stated by the state’s industries department. This investment is anticipated to generate around 5,000 job opportunities. TRB Rajaa, Tamil Nadu’s industries minister, announced on social media that Tata Motors will establish a state-of-the-art vehicle manufacturing facility in the region.

In a significant development, Tata Motors has signed a memorandum of understanding (MoU) with the Tamil Nadu government for this venture, marking a pivotal moment for the automotive industry. Rajaa revealed to CNBC-TV18 that Tata Motors will disclose specifics regarding the plant’s location and the types of vehicles to be produced there. Production is expected to commence within 18 to 24 months on a sprawling 500-acre land bank.

Rajaa attributed Tamil Nadu’s policy consistency, economic growth, skilled workforce, and favorable business environment as key factors in attracting such investments. He highlighted recent significant investments in the automobile sector, including Vietnamese EV giant VinFast’s ₹16,000 crore investment in a Tuticorin-based plant and Hyundai Motor India’s ₹6,180 crore expansion project in Irungattukottai.

Although the precise location of Tata Motors’ plant is yet to be finalized, Rajaa mentioned the company’s preference for a site near Chennai. He indicated that the company is considering options provided by the state government. While the focus of production—whether commercial or passenger vehicles—remains undisclosed, Rajaa suggested the possibility of the plant specializing in electric vehicles (EVs).

Rajaa emphasized Tamil Nadu’s favorable EV policy, which encourages automobile manufacturers to choose the state for EV production. He anticipates Tata Motors breaking ground on the project in the coming months, with the first vehicles expected to roll off the assembly line within 18 to 24 months. He hinted that production might even commence earlier than expected.