- 30 Sep 2024
- ICICI Securities
NEW MANUFACTURING FACILITY IN TAMIL NADU
News: Tata motors conducted groundbreaking ceremony for its new vehicle manufacturing facility in Tamil Nadu. It plans to invest ~₹9,000 crores in this facility, which will have an annual production capacity of over 2.5 lakh vehicles, with production ramping up over the next 5-7 years. This state-of-the-art, greenfield plant will utilize 100% renewable energy to produce next-generation vehicles for both Tata Motors and JLR in the PV domain.
Views: The Investment signifies Tata's commitment to expanding its production capabilities, particularly for next-generation vehicles, including electric and luxury models. The new plant aims to cater both domestic as well as global market. With long term investment horizon, we have a positive view on the company amidst turnaround in place at JLR, consistent double digit margin profile at domestic CV business, well charted path to profitability for Indian PV business and company’s auto business slated to become net debt free in FY25E.
Impact: Positive