Tata Motors has signed a power purchase agreement with Tata Power Renewable Energy to jointly develop a 131 megawatt (MW) wind-solar hybrid project.
The clean energy plant, which will power six of the automaker’s facilities in Maharashtra and Gujarat, marks a pivotal shift in India’s industrial transition to renewable energy. The project, once operational, is expected to generate approximately 300 million units of clean electricity every year. This output will help the automotive major offset over two lakh tonnes of carbon dioxide emissions annually—substantially reducing the carbon footprint of its manufacturing operations. The move reinforces the company’s goal of sourcing 100% of its energy needs from renewable sources by 2030.
While the exact location of the hybrid project remains undisclosed, officials confirmed it will exclusively cater to Tata Motors’ captive power requirements across its passenger and commercial vehicle manufacturing hubs. This integrated approach to clean energy will allow Tata Motors to secure a reliable and cost-effective green power supply, insulating its operations from fossil fuel price volatility and grid inconsistencies. An official from the commercial vehicle division stated that the initiative aligns with the company’s broader purpose of promoting sustainable mobility solutions, not only in vehicle performance but across the production lifecycle. The shift, according to the official, represents a “defining moment in green manufacturing” as it scales renewable integration across operations in high-demand industrial zones.
Meanwhile, an expert from the passenger vehicle business unit noted that this collaboration signals a firm commitment to India’s green energy transition and future-ready automotive sector. The official highlighted that renewable energy use is not just an environmental imperative but also a strategic move toward cost efficiency and resilience in industrial supply chains. The hybrid model—combining solar and wind generation—ensures consistency in power delivery, overcoming the intermittency challenge often associated with standalone renewable systems. This makes it a robust choice for industrial consumers like Tata Motors, who demand uninterrupted power for round-the-clock manufacturing.
Industry analysts view this development as part of a growing trend where Indian conglomerates are taking proactive steps to decarbonise their operations. The automotive sector, a major energy consumer, has seen increasing investment in clean power as part of environmental, social, and governance (ESG) mandates. In addition to reducing operational emissions, the project supports India’s broader climate goals under the Paris Agreement and the Nationally Determined Contributions (NDCs), with corporates playing an increasing role in clean energy deployment. By opting for captive generation, Tata Motors also avoids transmission losses and central grid dependency, while contributing surplus clean energy to local networks when possible.
The move comes amid rising policy support for hybrid and decentralised energy systems. Central and state governments are actively encouraging private sector participation through incentives, faster clearances, and renewable energy mandates in industrial sectors. According to renewable energy consultants, such captive hybrid projects are crucial in driving industrial decarbonisation while enabling businesses to meet global investor expectations on sustainability and compliance. A senior analyst noted that green energy use is no longer a public relations exercise—it is a metric for market readiness, international financing, and long-term competitiveness.
The timing of Tata Motors’ initiative is also critical, with the company ramping up production of electric vehicles and alternative mobility platforms. Clean energy at the production stage bolsters the climate credentials of the final product, making the entire value chain environmentally responsible. As India works to meet its ambitious target of 500 GW of non-fossil fuel capacity by 2030, such high-impact corporate collaborations are emerging as cornerstones in the national renewable strategy. For cities and regions hosting these green projects, the benefits extend beyond emissions—improved air quality, job creation in clean energy sectors, and infrastructure development form a positive feedback loop for sustainable urban growth.
This latest effort by Tata Motors and Tata Power signals more than just corporate synergy—it reflects a transformative moment for India’s industrial ecosystem, where environmental goals and economic efficiency are no longer at odds but part of the same growth trajectory.
Tata Motors Commits to Clean Energy with 131 MW Wind-Solar Project
