Tata Motors on Wednesday signed a facilitation memorandum of understanding (MoU) with the government of Tamil Nadu to plan a vehicle manufacturing facility in the state at an investment of Rs 9,000 crore.

This investment will be made over a period of five years and it would potentially create up to 5,000 jobs (direct and indirect).

The homegrown auto firm said in a statement that following the signing of the MoU, teams from Guidance, Tamil Nadu’s nodal agency for investment promotion and facilitation, and Tata Motors will work together to take this opportunity forward.

According to state industries minister T.R.B. Rajaa, the proposed facility will come up in the Ranipet district.

Tata Motors CFO P.B Balaji and V. Vishnu, MD & CEO, Guidance Tamil Nadu, exchanged documents in the presence of chief minister M.K. Stalin.

Rajaa said in a post on ‘X’ that for the first time ever, the state has attracted two big automobile manufacturing investments within a span of just two months.

The other big ticket investment bagged by the state government is from Vietnam-based Vinfast, which has committed to invest Rs 16,000 crore for an electric vehicle manufacturing facility in the southern district of Thoothukudi.

“Over the past couple of years, Tamil Nadu has hit the fast lane and become the ultimate hub for investments, showcasing our chief minister’s dedication to fostering top-tier employment,’’ he added.

Raja declined to reveal the extent of land allocation done for Tata Motors. Of the 5,000 jobs, majority of the candidates would be women.

Asked whether the company was taking over the manufacturing facility of US auto maker Ford’s defunct unit at Maraimalai Nagar near Chennai, the minister said, “No, they are not.”

On what kind of incentive was offered to Tata Motors, Rajaa explained it was not just the incentive, but companies look for the kind of ecosystem available in Tamil Nadu, the infrastructure, availability of talent pool and ease of doing business.