Tata Motors To Invest Rs 9,000 Crore For A New Plant In Tamil Nadu

It is yet to be confirmed whether it will be used for the production of passenger vehicles of commercial vehicles

Tata Motors is one of India’s largest car manufacturers and one of the top carmakers in terms of passenger vehicle sales. The company already has 7 manufacturing facilities in India, 3 of which are used for the production of passenger vehicles. Now, the carmaker has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government for setting up a new facility in the southern state.

About The New Plant

The details of the location and size of the new facility are scarce but Tata has planned to invest Rs 9,000 crore for the new manufacturing facility over the period of the next 5 years. As per Tata, this new facility will directly or indirectly create up to 5,000 new jobs in the state.

This MoU was signed in the presence of MK Stalin, CM (chief minister), Tamil Nadu, and was signed between V Vishnu, IAS, MD (managing director) & CEO, Guidance, and PB Balaji, Group CFO, Tata Motors.

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Tata has also not clarified whether this new facility will be used for the production of passenger vehicles or commercial vehicles. We expect these details to be revealed in due course.

Benefits For Tata

Tata is currently placed in the top three car manufacturing companies in India and is constantly in the battle with Hyundai for the second spot. It is already on track for an annual production capacity of over 10 lakh units after the expansion of the Sanand plant. However, the new facility, if used for the production of passenger cars, will allow Tata to expand its horizons even further. Not only will the added production help the Indian carmaker maintain lower wait times, the higher production output might help Tata get on a path to grab a higher market share and stay comfortably ahead of Hyundai.