Industry News

Tata confirms Ford Gujarat plant takeover plans | Autocar India

Written by Sunny Kumar

This transfer can be instrumental to Tata’s ongoing EV push. Ford to proceed constructing powertrains on the Sanand plant.

Tata Passenger Electrical Mobility Restricted (TPEML), the EV division of Tata Motors Ltd, and Ford India Non-public Restricted (FIPL) have signed a Memorandum of Understanding (MoU) with the Gujarat authorities, permitting Tata Motors to amass Ford’s Sanand plant.  

  • Tata Motors already has a plant in Sanand
  • Acquisition will embody land, constructing and workers
  • Plant’s capability might go as much as over four lakh items every year

Ford’s Sanand plant: quickly in Tata Motors’ fingers

The acquisition will embody possession of the land, buildings, the manufacturing plant and switch of workers. Ford, nonetheless, will proceed constructing its powertrain manufacturing facility by leasing the land again from Tata.  

TPEML is predicted to speculate into new equipment and tools, which is critical to fee and make the unit prepared to supply autos. The present capability on the Sanand plant is 2.four lakh autos and a couple of.7 lakh engines every year. With the proposed plans, it could set up an put in capability of three lakh items every year, which might be scalable as much as greater than four lakh items. This can assist Tata shut in on its intention of constructing 5 lakh vehicles a 12 months.

The potential acquisition of this unit is a win-win for all stakeholders, and helps Tata Motors speed up the enhancement of its manufacturing capability, together with its EV plans. The truth that the Ford plant is adjoining to Tata Motors’ current manufacturing facility ought to assist in a clean transition.

“Tata Motors has had a robust presence in Gujarat for greater than a decade with its personal manufacturing facility at Sanand,” mentioned Shailesh Chandra, managing director, Tata Motors Passenger Autos Restricted and Tata Passenger Electrical Mobility Restricted. “This potential transaction will help growth of capability to strengthen our place within the passenger and electrical autos house.”

This MoU can be adopted by signing of the definitive transaction agreements between TPEML and FIPL over the following few weeks.

Tata Motors future plans

Tata Motors not too long ago trademarked 4 names for his or her upcoming vehicles and likewise showcased the Avinya and Curvv ideas in April 2022. The corporate’s gross sales have been steadily rising, and in December 2021, Tata even surpassed Hyundai to take the second spot in retail gross sales. 

Do you suppose Tata Motors will profit from the acquisition? Tell us within the feedback.

About the author

Sunny Kumar