Tata Motors to build new manufacturing plant in Tamil Nadu
Tata Motors has entered into a Memorandum of Understanding (MoU) with the Government of Tamil Nadu to build a vehicle production facility in the state. The MoU expects an investment of approximately Rs 9,000 crore over a span of five years and is likely to generate up to 5,000 job opportunities. Following the signing of the MoU, teams from Guidance, Tamil Nadu's nodal agency for investment promotion and facilitation, and Tata Motors Group will collaborate to progress with this initiative.
The exchange of the MoU took place in the presence of M. K. Stalin, Chief Minister of Tamil Nadu, and was signed by V Vishnu, IAS, Managing Director and CEO of Guidance, and PB Balaji, Group CFO of Tata Motors. The Minister for Industries TRB Rajaa and the Secretary of Industries, Investment Promotion, and Commerce Department Arun Roy IAS were also in attendance. Notably, Tata Motors Limited's shares saw a one percent increase, trading at Rs 982 on the morning of March 14, following the announcement of the MoU signing with the Tamil Nadu Government.
Additionally, Tata Motors recently approved the demerger of its business into two separate entities: Passenger Vehicle (PV) and Commercial Vehicle (CV) business. The PV segment includes electric vehicles (EVs) and Jaguar Land Rover (JLR). While this development is in its early stages, it is expected to materialise over the course of 12-15 months.
In February 2024, CM Stalin laid the foundation stone for the electric vehicle (EV) car and battery production plant of VinFast Auto Ltd, a Vietnam-based EV manufacturer. The company is set to invest approximately Rs 16,000 crore in the state. Further, Tamil Nadu already hosts renowned global automotive brands such as Daimler, BMW, and Hyundai.
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