Tata Motors Group shares traded flat despite having signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu (TN) to explore setting up a vehicle manufacturing facility in the state.

As per Tata Motor’s recent regulatory filing, the MoU with the Government of Tamil Nadu envisages an investment of Rs 9,000 crores over 5 years and can potentially create up to 5,000 jobs.

This will be Tata Motors’ second plant in South India, after Dharwad in Karnataka.

Last month, the Chief Minister of Tamil Nadu, MK Stalin, laid the foundation stone for an electric vehicle and battery manufacturing facility in the state. The facility is being set up by VinFast Auto Ltd, a Vietnamese electric vehicle (EV) focused auto company that has earmarked investments worth Rs 16,000 crore.

Further, according to the company’s regulatory filing on March 4, the company approved a demerger of its business into two separate units: the commercial vehicle (CV) business and the passenger vehicle (PV) business. The PV business includes electric vehicles (EVs) and Jaguar Land Rover (JLR). This development is still in its early stages, and it is expected to take about 12-15 months to materialise.

Tata Motors is India’s market leader in commercial vehicles and ranks among the top three in the passenger vehicles market. The company is pioneering India’s Electric Vehicle transition and driving the shift towards sustainable mobility solutions. Tata Motors has operations in India, the UK, South Korea, Thailand, South Africa, and Indonesia.

However, at 11:30 am, the shares of Tata Motors were trading 0.92% lower at Rs 964.25 on NSE.