Tata Motors will open a new manufacturing plant here, the company said ₹ 900 crore will be spent
Auto sector giant Tata Motors is going to invest heavily in Tamil Nadu. Tata Motors has signed an MoU with the state government today. According to this agreement, the company will set up a vehicle manufacturing facility in the state and a huge investment will be made on this facility. Tata Motors has informed the stock market about this plan after the market is closed. The impact of the news can be seen in Thursday’s business. The stock closed with a decline of more than 4 percent on Wednesday.
What is the announcement of Tata Motors?
In the information sent to the stock market, Tata Motors said that it has signed an MoU with the Tamil Nadu government to set up a vehicle manufacturing facility in the state. According to the MOU, an investment of Rs 9000 crore will be made on this facility. This investment is to be made in the next 5 years. It is estimated that this investment will create 5000 new jobs in the state.
Before Tata Motors, Vietnam’s electric vehicle manufacturer VinFast has also started the construction of a factory in the state. In this way, within two months, two big names of the auto sector have announced to set up their own plants in the state.
How was the stock’s performance?
A decline of 4.28 percent was seen in the stock of Tata Motors on Wednesday. However, in the medium to long term, the stock has been a profitable deal for investors. Investors have got 130 percent return in the stock in one year. The return in last 3 years has been 206 percent. The stock has increased by 35 percent in 3 months. The stock is currently at the level of 973. In the report of March 6, Sharekhan has advised to invest in the stock with a target of Rs 1188.
