Tata Motors' new unit in Dharwad, Karnataka, has started operations and would manufacture commercial vehicle models like the Ace Zip and Magic Iris.
"We are very delighted to commence manufacturing operations in Dharwad and further expand our operations in the country," declared P.M. Telang, managing director of India operations, adding that the move was integral to ensuring Tata Motors' dominant presence in the commercial vehicles market.
According to the company, the new plant, which has state-of-the-art equipment based on lean manufacturing principles, is spread over an area of 405 acres, and required an investment of over Rs 900 crore.
"Major capital outlay required for civil and plant work facility has been sourced from Europe, the US, South Korea, Japan and the best-in-class suppliers from India," the company said in a statement.
The plant has an initial production capacity of 90,000 units per year and provides for future expansion.