There’s nothing new in the fact that Tata Motors was eyeing Ford’s Gujarat and Tamil Nadu manufacturing facilities. And now the homegrown carmaker’s electric subsidiary, Tata Passenger Electric Mobility Limited (TPEML), has signed a Memorandum of Understanding (MOU) with the government of Gujarat for the potential acquisition of Ford’s Sanand plant with the manufacturing machinery and equipment. As part of the accord, it also seeks the transfer of qualified employees working at Ford’s vehicle manufacturing facility in Sanand. Interestingly, this unit is adjacent to the existing manufacturing facility of Tata Motors at Sanand.
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Back in September 2021, Ford ceased its manufacturing operations in India. However, it was supposed to make India its EV manufacturing hub under the government’s PLI scheme. But recently, the American carmaker has also withdrawn its plan for EV production. However, the brand will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from Tata Motors.
In the official press statement, Tata Motors has also stated that it will invest in new machinery and equipment at Ford’s Sanand plant, which is necessary to produce its vehicles. Initially, Tata intends to achieve a production capacity of 3 lakh units per year, which will be further scalable to 4 lakh units per annum. Tata will soon complete the final transaction agreements with Ford.
Speaking on the occasion, Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility 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 the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”
