Tata Motors released a statement announcing an MoU signed with the government of Tamil Nadu, a southern state in India, to invest INR90 billion to set up a vehicle manufacturing facility in the southern Indian state, generating up to 5,000 jobs. The investment will spread over five years.
The announcement comes after VinFast, a Vietnam-based EV brand, began construction on a factory in Tamil Nadu, with operation of the facility expected in mid-2025, producing 150,000 vehicles annually. Tamil Nadu is a major automobile production hub in India, with global manufacturers such as BMW and Hyundai having manufacturing facilities in the state.
According to The Hindu, T.R.B, Minister for Industries of Tamil Nadu, said on X that another billion dollar investment came into the state, adding that for the first time, Tamil Nadu attracted two big automobile manufacturing investments within two months.
The Chief Minister's office of Tamil Nadu released a statement saying the agreement with Tata Motors Group signifies another significant step towards enhancing industrial development, and the state, being the second-largest economic state in India, is committed to becoming a trillion-dollar economy by 2030.
Since January, Tata Motors has become India's largest carmaker by valuation. In early March, Tata Motors announced a plan to split its businesses into two listed firms by separating its commercial and passenger business into two arms. The separation process is expected to take 12-15 months to complete, per reports from Reuters.
