Tata Motors, owner of British luxury car brands Jaguar and Land Rover, plans to set up a new factory in Tamil Nadu. The company’s aim is to enable the production of Jaguar Land Rover (JLR) luxury vehicles in this new factory. Tata Motors is reportedly investing $1 billion (around Rs 8,300 crore) to capitalize on the growing demand for premium automobiles in the Indian market.
Tata Motors’ new factory in Tamil Nadu
Tata Motors had earlier announced its intention to invest in expanding manufacturing facilities in Tamil Nadu. And now reports say that this new manufacturing facility will now produce Jaguar and Land Rover vehicles for the country.
At the moment, the exact details of the models that will be produced in the upcoming factory are not yet known. However, the company will most likely produce the most popular models of both brands that it currently sells in the country.
Where will this facility be located?
The Memorandum of Understanding was signed between Tata Motors and the Government of Tamil Nadu. This formalizes the agreement to establish the new production facility. The future plant is expected to be located in Ranipet district in close proximity to Vellore.
Tata Motors has strategically located this location for setting up the plant. This is because the company wants to take advantage of favorable logistical advantages and access to skilled labor in the region.
Notably, the proposed plant in Tamil Nadu will be Tata Motors’ second manufacturing facility in South India. The company currently has an existing facility in Dharwad, Karnataka.
The construction of the new plant by Tata Motors is expected to create significant employment opportunities for the local community. It is estimated that the Ranipet plant will create employment for around 5,000 people.
Tata Motors also bought the old Ford plant
In 2022, Tata Motors also bought the Ford India plant in Sanand, Gujarat. This plant was purchased for Rs 725.7 crores. After the company restarted this factory, the company rolled out the first car from this factory in early January this year.
This first car was the facelift of the Tata Nexon EV. The subsidiary responsible for this milestone, Tata Passenger Electric Mobility (TPEM), officially announced the start of passenger car production at the Sanand plant.
Tata Motors has designed this plant to manufacture internal combustion engines (ICE) and electric vehicles. This facility has been equipped with advanced technology and automation in the areas of stamping, body construction, painting and final assembly.
According to the company, the workforce currently stands at over 1,000. The plan is to expand and hire another 1,000 employees within the next 3 to 4 months. This is done to achieve the company’s production growth goals.
Acquisition of Ford Sanand plant will increase Tata Motors’ production capacity by 3000,000 units per annum, which can be expanded to 4,200,000 vehicles per annum. For those who may not know, Tata Motors already has a manufacturing facility in Sanand, Gujarat.
Tata Motors set up this plant more than a decade ago primarily to manufacture the Nano. However, when the production of the Nano hatchback stopped, Tata Motors started using the Sanand plant to build the Tiago hatchback and the Tigor compact sedan.
Before selling this plant to Tata Motors, Ford India built the Figo hatchback, Aspire compact sedan and Freestyle crossover at the Sanand plant. This work was founded in 2015. Ford invested around $1 billion in this factory, which was around Rs 6,500 crore in 2015.
source
The post Tata Motors to build Jaguar Land Rover cars at $1 billion plant in Tamil Nadu appeared first on Cartoq.