Tata Motors inks deal with Tamil Nadu government for manufacturing plant, to invest ₹9,000 in 5 years

Tata Motors on Wednesday announced signing an agreement with the Tamil Nadu government to set up a vehicle manufacturing facility in the state.

As per the agreement, Tata Motors will invest ₹9,000 crore over five years. The vehicle manufacturing facility is expected to create up to 5,000 direct and indirect jobs in Tamil Nadu, the company said in a filing to the stock exchanges.

“The Memorandum of Understanding (MoU) between Tata Motors and the Tamil Nadu government envisages an investment of ₹9,000 crore over 5 years and can potentially create up to 5,000 jobs (direct and indirect)," the Tata Group company said.

Following the signing of this MoU, teams from Guidance, Tamil Nadu's nodal agency for investment promotion and facilitation, and Tata Motors will work together to take this collaboration forward, the company informed the bourses.

The MoU was signed by V Vishnu, IAS, Managing Director and CEO, Guidance, and PB Balaji, Group CFO, Tata Motors, in the presence of Tamil Nadu Chief Minister MK Stalin.

Tamil Nadu Minister for Industries TRB Rajaa, the Secretary of Industries, Investment Promotion and Commerce Arun Roy, and senior officials of TATA Motors Group were also present on the occasion of MOU signing.

A part of the $150 billion Tata group, Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks, and buses, offering an extensive range of integrated, smart and e-mobility solutions.

Tata Motors is India’s market leader in commercial vehicles and ranks among the top three in the passenger vehicles market.

Shares of Tata Motors closed 4.2% lower at ₹973 apiece on NSE on Wednesday.