The company has confirmed its long term commitment to advanced research and development in the UK through the participation of its subsidiary, Tata Motors European Technical Centre (TMETC), in the NAIC, Tata Motors said in a statement.
"The NAIC, which represents a total investment of around 100 million pounds, will receive funding from Tata Motors of around 30 million pounds, alongside the support of its partners, Jaguar Land Rover, WMG and the UK Government's Higher Education Funding Council England (HEFCE)," it added.
The NAIC will open in 2016 and will house around 1,000 world class engineers and scientists. It will be a research hub for creating technologies for the automotive industry.
"This investment constitutes the next step in Tata Motors' strategy to develop world class products for its global customers and TMETC plays a significant role in that plan," Tata Motors Head of Advanced Engineering and Product Development Tim Leverton said.
The NAIC will provide TMETC and its partners facilities to enable collaborative research, as well as a focus for automotive innovation and academic teaching at the University of Warwick, the company said.
"This will significantly enhance TMETC's contribution to Tata Motors' future product innovation and development," it added.
Construction of the NAIC is scheduled to begin in September 2014 and when completed will constitute a major UK automotive R&D asset. TMETC will be joined in the NAIC project by its partners, Jaguar Land Rover and the Warwick Manufacturing Group (WMG) at the University of Warwick.
Tata Motors, which is India's largest automobile company, posted consolidated revenue of USD 34.7 billion in 2012-13.