Jaguar Land Rover-owner Tata Group on July 19 announced its ambitious plan to invest £4 billion in an electric car battery factory in the UK. This landmark project marks one of the most significant investments in the country's automotive industry to date.
The gigafactory - Tata's first outside of India - includes an investment of 4 billion pounds ($5.2 billion), the company said.
Investors also cheered for the company's aggressive investment plans, lifting the shares of Tata Motors to the day's high of Rs 625.30 on July 19. At 12.55 am, shares of Tata Motors were trading 1.64 percent higher at Rs 622.15 on the National Stock Exchange.
The upbeat sentiment around the automaker's luxury arm, Jaguar and Land Rover, have been acting as the major growth trigger for Tata Motors. The bullish sentiment for JLR has fueled an over 60 percent jump in the share price of Tata Motors year-to-date.
Tata's choice of Britain is a win for Prime Minister Rishi Sunak's government, which had pledged to grow the economy and had set net zero goals including a ban on the sale of new petrol and diesel cars from 2030.
"Tata Group's multi-billion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers," Sunak said in the statement.
The government said the factory would create up to 4,000 jobs, with further roles expected to be created in the supply chain.
"With this strategic investment, the Tata Group further strengthens its commitment to the UK," Tata Sons Chairman N Chandrasekaran said in the statement.
In April this year, JLR Chief Executive Adrian Mardell told reporters at a media event that the Tata Group is clear the new Gigafactory is going to be in Europe. Spain was believed to be the other site under consideration at the time.
"The important thing is our underpinning of [battery] supply is inhouse we are the anchor customer and absolutely have equity in making sure that the right decisions are made. Wherever it (factory) goes will be an optimised proposal for us," he said.
(With inputs from agencies)
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