Tata Motors’ road map to establish Tamil Nadu as an export hub for electric vehicles (EVs) 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 be the first time a premium vehicle will be completely manufactured in India rather than being assembled.
The unit is expected to be operational in 12-18 months after that.
The company and the state have zeroed in on over 400 acres near Panapakkam, 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 km from Chennai, is its proximity to Chennai and Ennore ports.
Another source said a standard greenfield project in this sector typically took 12-18 months to be commissioned, and going by this thumb rule, this iconic project is likely to be completed by late 2025 or early 2026.
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Tamil Nadu Chief Minister M K Stalin is expected to lay the foundation stone.
A Tata Motors official said the company was yet to take a call on what would be manufactured at the unit. Last month, Business Standard reported Tata Motors would come 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 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 say 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 in accordance with 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 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, according to estimates by the central government. This project is expected to reduce travel time between Hoskote, in the jurisdiction of the Bangalore Metropolitan Region Development Authority, and Sriperumbudur, under 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.