Tata Motors-JLR Tamil Nadu project to get a move within two months
Industry experts believe that Tata Motors is likely to rely on the existing ecosystem of Hyundai Motor India (HMIL) and Renault Nissan Automotive India, in addition to bringing in their own suppliers.
The roadmap by Tata Motors to establish Tamil Nadu as an export hub for electric vehicles from Jaguar Land Rover (JLR) is set to be on track, with the company expected to lay the foundation stone for the Rs 9,000 crore project by September. This will mark the first time a premium vehicle will be completely manufactured in India, rather than being assembled. The new unit is expected to be operational within 12-18 months after that.
The company and the state have already zeroed in on over 400 acres of land near Panapakkam in Ranipet district. This project will serve as a link between Hosur and Chennai, connecting the Chennai-Bengaluru Industrial Corridor. The advantage of this location, approximately 90 kilometres from Chennai, is its proximity to the Chennai and Ennore ports. According to multiple sources, the foundation stone ceremony is expected to take place within the next two months. Another source mentioned that a standard greenfield project in this sector typically takes 12-18 months to be commissioned. Going by this thumb rule, this iconic project is likely to be completed by late 2025 or early 2026. Tamil Nadu chief minister M K Stalin is expected to lay the foundation stone.
A Tata Motors official mentioned that the company is yet to decide what will be manufactured at the planned unit. Last month, Business Standard reported that Tata Motors will be coming up with Made in India models based on the Electrified Modular Architecture (EMA) from JLR for export, as well as Tata EVs based on the EMA architecture. The finer details of these models are still unknown. Recently, French automaker Citroen also exported EVs made in India to international markets. In terms of internal combustion engine (ICE) vehicles, JLR’s facility in Pune already manufactures completely knocked-down (CKD) units of Range Rover Velar, Evoque, Jaguar F-PACE, and Discovery Sport. The facility has now added Range Rover and Range Rover Sport to its production line.
Industry experts believe that Tata Motors is likely to rely on the existing ecosystem of Hyundai Motor India (HMIL) and Renault Nissan Automotive India, in addition to bringing in their own suppliers. “The existing ecosystem can easily diversify to the requirements of Tata Motors-JLR standards. The state is also pushing to provide the right ecosystem and policies to suit the original equipment manufacturers (OEMs) and vendors,” said an industry source.
However, the Tata Motors project is considered a connecting link in the Chennai-Bengaluru Industrial Corridor, one of the five upcoming mega-industrial corridors in India. The Bengaluru-Chennai Expressway and Bengaluru-Chennai Dedicated Freight Corridor are two major infrastructure projects expected to enhance connectivity along the corridor. The expressway, with an investment of around Rs 18,000 crore, is expected to be completed by December 2024, according to estimates by the central government. This project is expected to reduce travel time between Hoskote in the Bangalore Metropolitan Region Development Authority and Sriperumbudur in the Chennai Metropolitan Area.
“The industrial belts coming under this region are well diversified, starting from the automobile sector in Sriperumbudur, India’s EV hub Hosur, the leather industry in Vellore, and the upcoming footwear hub in Panapakkam itself,” the industry source added.
First Published: Jul 28 2024 | 4:00 PM IST