Tata To Buy Ford’s Manufacturing Facility In Gujarat | V3Cars

May 30, 2022, 01:00 PM IST
By Amit Saraswat
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Putting numerous rumours to rest, Tata Motors have confirmed their acquisition of Ford’s Sanand manufacturing facility. The Indian carmaker has signed a memorandum of understanding (MOU) with Ford India and the transaction is said to take place in the coming weeks.

Tata Motors are likely to utilise Ford’s state of the art facility to increase their production capacity. Under the agreement, Tata Motors will acquire the land and buildings, manufacturing plant and equipment, and transfer all eligible Ford India employees. It is worth noting that Ford India will lease back the land and building for their powertrain manufacturing at the Sanand plant.

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Earlier, rumours suggested that Ford India are likely to manufacture electric vehicles in India. However, those plans were ruled out due to the multiple hurdles. Tata Motors, on the other hand, are playing a key role in growing the electric vehicle segment in India. The Indian carmaker is heavily investing in future mobility while refreshing its current electric vehicle portfolio. Tata Motors plan to invest and establish a production capacity of 3 lakh units per annum with the capability of increasing it to 4 lakh units when needed.

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Speaking on the occasion, Mr. Shailesh Chandra, MD, Tata Motors Passenger Vehicles Limited, said, “Tata Motors has a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities. Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”

Also Read: Tata Avinya Electric Concept Revealed – Launch In 2025 | V3Cars

ABOUT THE AUTHOR

Amit Saraswat

Born and brought up in Agra, he grew up reading magazines more than textbooks. With a keen interest in cars, he decided to make his future in automotive journalism and is currently helping in content at V3Cars.

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