Tata Motors Announces Rs 9,000 Crore Investment for New Tamil Nadu Plant
Although specific details about the plant’s location and size have not been released, the investment aims to create around 5,000 new jobs in the state within the next 5 years.
According to the state Government, the Tata Motors Manufacturing plant is an essential component in establishing Tamil Nadu’s industrial development with Tata Motors being the second out of two automobile manufacturing plants to open in the region in just the span of two months with VinFast being the first.
Vinfast’s Thoothukudi project is expected to invest Rs. 4,000 crores and employ 10,000 employees in the first phase of the project. VinFast’s first-class manufacturing facility is expected to produce 150,000 units annually.
The Memorandum of Understanding (MoU) for this project was signed in the presence of Tamil Nadu Chief Minister MK Stalin by V Vishnu, MD & CEO of Guidance, and PB Balaji, Group CFO of Tata Motors.
Tata Motors currently has & manufacturing plants in India out of which three of them are used for the production of passenger vehicles. After the expansion of the Sanand plant, Tata Motors has the capacity to produce 10 lakh vehicles every year.
The purpose of the new facility, whether for making passenger vehicles or commercial ones, has not been confirmed yet by Tata Motors. However, Tata aims to strengthen its position and possibly surpass competitors like Hyundai.
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With the investment into the new manufacturing facility, if it is used for producing passenger vehicles, Tata Motors will not only be able to produce vehicles faster resulting in shorter waiting periods but also might enable Tata Motors to maintain a larger market share.
