In an exchange filing on Wednesday, the automotive behemoth Tata Motors and the Tamil Nadu government announced the signing of a Memorandum of Understanding (MoU) to construct a vehicle manufacturing plant with an investment of Rs 9,000crore over the following five years.

With 5,000 specifically designated positions, the agreement strengthens the creation of jobs in the state even more.

The news follows the start of construction of a facility by VinFast, a Vietnamese manufacturer of electric vehicles, in the southern state. This is the second investment in automotive production in less than two months.

Dr. T R B Rajaa, the Minister of Industries for Tamil Nadu, also spoke on X about the massive project, stating that the state is headed toward prosperity and has emerged as a top destination for investments.

"In the last few years, Tamil Nadu has accelerated and emerged as the premier investment destination, demonstrating the commitment of our Chief Minister to promoting elite jobs for our dynamic young and enhancing our industrial strength. We're engineering aspirations and racing toward a better, more wealthy future—we're not simply creating factories," he said.

M.K. Stalin, the Chief Minister of Tamil Nadu, witnessed the exchanging of the Memorandum of Understanding. It was signed by Tata Motors Group CFO PB Balaji and Managing Director & CEO of Guidance Vishnu, IAS.

Senior representatives of TATA Motors Group were also in attendance, along with Minister of Industries Dr. TRB Rajaa and Secretary of Industries, Investment Promotion & Commerce Department Arun Roy, IAS.

"Following the signing of this MoU, teams from Guidance, Tamil Nadu's nodal agency for investment promotion and facilitation and TataMotors Group will work together to take this opportunity forward," it added.

Chennai, the capital of Tamil Nadu and known as the Detroit of Asia, is home to plants for major international automakers including BMW, Daimler, and Hyundai.