New Agreement Makes Tata Official Owner Of Ford’s Sanand Plant In Gujarat

The added production capacity will enable Tata to meet demands for current and future EV models

  • Ford shut its manufacturing operations in India in 2021. 

  • Tata Electric Mobility now owns the Sanand plant and all its facilities. 

  • Nexon EV and upcoming Curvv and Avinya could be produced at the said facility.

  • Ford will continue to build engines by leasing the powertrain manufacturing unit from Tata. 

  • Eligible employees to be transferred to Tata. 

US-based carmaker Ford is transferring its Sanand plant in Gujarat to Tata Motors’s EV division, Tata Electric Mobility. It has acquired Ford’s facilities and production units for Rs 725.7 crore (excluding taxes) and will absorb all eligible Ford employees. 

Ford will continue to manufacture engines at its Powertrain Manufacturing Facility for now, by leasing the land and buildings from Tata. Later, if the engine production operations are ceased, Tata has agreed to offer new opportunities to the affected Ford employees. 

Tata to benefit from added production capacity 

The acquisition has been finalised at an opportune time for Tata Motors, which has been facing some production capacity issues. The Ford plant has a capacity to produce up to 3 lakh vehicles annually and can be scaled up to 4.2 lakh cars per year. 

“The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors’s strongaspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment,” said Shailesh Chandra, the Managing Director of Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited.

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Tata is expected to announce the commencement of its own operations at Sanand soon, after government and regulatory approvals are received. Future electric vehicles derived from the Curvv and Avinya concepts could be manufactured at this facility. Meanwhile, the move could also allow Tata to bring down waiting times for its existing models.

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