Tata Motors plans to invest Rs 914 crore to set up a new vehicle manufacturing plant in Tamil Nadu. 

The new facility will have an annual production capacity of more than 2.5 lakh units, with production ramping up over the next five to seven years to meet this target.

The new facility is expected to serve as a central hub for the production of nextgeneration cars and SUVs, including electric and luxury vehicle models. The company officially broke ground for the new factory in September at Panapakkam in Ranipet District, located approx. 85 km from Chennai. 

The upcoming greenfield facility will focus on the production of high-end cars and SUVs, both under the Tata Motors brand and its luxury division, Jaguar Land Rover (JLR).

As per the agreement signed with the Tamil Nadu government, Tata Motors has committed to an overall investment of Rs 9,000 crore for this project, which will be executed in phases over several years. 

In the first phase, the plant will spread over a built-up area of 52,000 sq. mtrs., out of a total land space of 19,02,022.5 sq. mtrs., as per the documents filed for environmental clearance.

The construction of the proposed factory is expected to take approx. 15 months and the new factory will employ about 1,500 employees. 

In addition to the new plant, Tata Motors is focused on building a local supplier base in the region, aimed at creating a localised manufacturing ecosystem and improving supply chain efficiency.