Tata Motors, the owner of the British luxury car brands Jaguar and Land Rover, is planning to set up a new plant in Tamil Nadu. The company is aiming to cater to the production of Jaguar Land Rover (JLR) luxury vehicles in this new plant. Reportedly, Tata Motors is making an investment of $1 billion (around Rs 8300 crore) to capitalize on the growing demand for premium automobiles in the Indian market.
Tata Motors’ new Tamil Nadu plant
Tata Motors earlier announced its intention to invest in expanding manufacturing operations in Tamil Nadu. And now reports have stated that this new manufacturing plant will now produce Jaguar and Land Rover vehicles for the country.
Presently, the specific details regarding the models slated for production at the upcoming plant remain undisclosed. However, most likely it will be producing the most popular models from both brands which it currently sells in the country.
Where will this plant be located?
The memorandum of understanding has been signed between Tata Motors and the Tamil Nadu government. This formalizes the agreement to establish the new manufacturing facility. The forthcoming plant is expected to be situated in the Ranipet district, in close proximity to Vellore.
Tata Motors has strategically located this place to set up the plant. This is because the company aims to capitalize on favorable logistical advantages and access to skilled labor pools from the area.
Notably, the proposed plant in Tamil Nadu will mark Tata Motors’ second manufacturing unit in southern India. The company currently has an existing facility in Dharwad, Karnataka.
Tata Motors’ establishment of the new plant is projected to generate significant employment opportunities for the local community. It is estimated that the Ranipet plant will create jobs for approximately 5,000 individuals.
Tata Motors also bought Ford’s old plant
Back in 2022, Tata Motors also bought Ford India’s plant located in Sanand, Gujarat. This plant was bought for Rs 725.7 crores. After making this plant operational once again, the company earlier in January of this rolled out the first car from this plant.
This first car was the Tata Nexon EV facelift. The subsidiary responsible for this milestone, Tata Passenger Electric Mobility (TPEM), officially announced the initiation of passenger vehicle production at the Sanand facility.
Tata Motors has designed this plant to manufacture both Internal Combustion Engine (ICE) and electric vehicles. This facility has been equipped with advanced technology and automation across its Stamping, Body construction, Paint, and Final assembly shops.
According to the company, the current workforce of over 1000. And it is planning to expand and hire an additional 1000 employees within the next 3 to 4 months. This will be done to meet the company’s production growth objectives.
The Ford Sanand factory acquisition will give Tata Motors a boost in production capacity of 3 lakh units per annum, which can further be expanded to 4.2 lakh cars per annum. For those who may not be aware, Tata Motors already has a production plant in Sanand, Gujarat.
Tata Motors has set up this plant more than a decade ago primarily to manufacture the Nano. However, as Nano hatchback’s production was ceased, Tata Motors started using the Sanand factory to build the Tiago hatchback and the Tigor compact sedan.
Before selling this plant to Tata Motors, Ford India used to build the Figo hatchback, the Aspire compact sedan, and the Freestyle crossover at the Sanand factory. This plant was established in 2015. Ford invested about a billion US dollars into this factory, which in 2015 was about 6,500 crore rupees.
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