(Bloomberg) -- Tata Motors Ltd. is planning to spend 90 billion rupees ($1.1 billion) on a vehicle factory in the southern Indian state of Tamil Nadu.

The investment, part of a non-binding accord, will be spread over five years, the carmaker said in a stock exchange filing Wednesday. Tata Motors will work with an agency responsible for investment promotion in the state to take the pact forward, it said. 

This is the second major automobile-related investment in Tamil Nadu in almost two months. Vietnamese automaker VinFast Auto Ltd. in January said it will invest as much as $2 billion to build an electric vehicle plant in the state, capable of producing 150,000 units annually.  

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Mumbai-based Tata Motors is in the midst of a major business restructuring. It is planning to split its passenger and commercial vehicles businesses into two listed companies. Trucks and buses along with related investments will be housed in one entity, while the second company will include passenger cars, electric vehicles and Jaguar Land Rover.

The company overtook Maruti Suzuki India Ltd. to become India’s most valuable carmaker in January, thanks to its strong presence in the sport utility vehicle and electric car segment. To further bolster its lead in the electric vehicle market, the company will invest around $2 billion in battery-powered models by 2027. Shares of Tata Motors have risen almost 23% this year.

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