Tata Motors Breaks Ground For New Car Plant In Tamil Nadu

Tata Motors Ltd. has broken ground for its new manufacturing plant in Tamil Nadu to make cars for India and the world.

To be built at a cost of Rs 9,000 crore and operating only on renewable power, the greenfield project at Panapakkam in Ranipet district of Tamil Nadu will have an annual production of 2,50,000 units for both Tata Motors and Jaguar Land Rover cars. The plant is expected to achieve peak output in 5-7 years, generating a total of 5,000 jobs.

“Several Tata Group companies have been successfully operating from here. We now intend to build our advanced vehicle manufacturing plant here…,” N. Chandrasekaran, chairman of Tata Motors and Tata Sons Pvt. Ltd., said in a statement on Saturday. “Our endeavour is to have a high share of women employees across levels, in line with our focus on greater empowerment of women.”

As on 31 March 2024, Tata Motors had an installed production capacity of one million units at its car assembly lines in Pune, Maharashtra, and Sanand, Gujarat, while clocking sales of 5,73,541 units. The company, by some reports, aims to clock annual sales of one million units by Fiscal 2030.

The manufacturing of JLR cars at the Tamil Nadu facility will also be a first. The iconic brand has been produced out of Solihull in the United Kingdom for at least 50 years. The local assembly of Range Rover SUVs recently commenced at Pune.

Tamil Nadu itself has emerged as an automotive hub on the east coast of India. The state houses the local manufacturing operations of South Korea’s Hyundai Motor Co., BMW AG, Renault-Nissan, Citroen PSA. Indian two-wheeler makers—including Royal Enfield, TVS Motor Co. Ltd., Ola Electric Mobility Ltd. and Ather Energy—also have a presence in the state. Recently, Ford Motor Co. of the US signed an agreement with the state government to restart operations at its Chennai unit but for exports only.

The Tata Group’s presence in Tamil Nadu is equally expansive.

Tata Electronics Ltd., which assembles Apple Inc.’s iPhones in Thimjepalli, Hosur, is building a township for its workers. Titan Co. Ltd. already has a presence in Hosur.

“The Tata Group has a deep, historic relationship with Tamil Nadu, with many of its manufacturing plants successfully operating in our state for the past several years,” Tamil Nadu Chief Minister MK Stalin said. “We welcome Tata Motors, an auto manufacturer of global scale, for setting up its newest manufacturing facility in Panapakkam, Ranipet.”