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Tata Motors Setting Up EV Plant In Tamil Nadu

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Tata Motors to invest 9000 crores for new EV plant in Tamil Nadu

Tata Motors, in collaboration with the Tamil Nadu government, is poised to establish a significant presence in the electric vehicle segment, potentially transforming the region into a hub for Jaguar Land Rover (JLR) EV production. The memorandum of understanding (MoU) signed between Tata Motors and the state government outlines a substantial investment of Rs. 9000 crores, with the initial focus on setting up an EV manufacturing plant in Ranipet.

According to sources familiar with the matter, the plant’s capacity, pegged at 2 lakh units initially, is expected to predominantly cater to JLR’s Electrified Modular Architecture (EMA) based EVs, with approximately 75 percent of the output earmarked for JLR. This move underscores Tata Motors’ strategic alignment with the global shift towards electric mobility, with a strong emphasis on leveraging its partnership with JLR.

While the official response from Tata Motors is pending, industry insiders speculate that the company’s decision to make Tamil Nadu a pivotal manufacturing base for JLR EVs comes at an opportune time, coinciding with the impending conclusion of the India-UK Free Trade Agreement (FTA). The upcoming plant is poised to play a crucial role in facilitating the exchange of cars between the two countries.

In addition to EV production, Tata Group is reportedly considering relocating some of JLR’s internal combustion engine model manufacturing to India. This strategic move is driven by the evolving regulatory landscape in the European Union and the UK, which may pose challenges to ICE engine production in those regions. Tata Group’s commitment to investing Rs. 1.5 lakh crore in JLR over the next decade underscores its long-term vision to transition Jaguar into an all-electric brand and introduce electric alternatives across Land Rover’s portfolio by 2026.

Furthermore, a recent report revealed a multi-billion-pound project, set to launch four models each from Tata Motors and JLR over the next decade, signalling a robust pipeline of future collaborations between the two entities.

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