comscore Tata cars waiting period to go down? Company to acquire Ford India plant

Tata Motors signs MoU to take over Ford India’s Gujarat plant

The current acquisition will be subject to the signing of definitive agreements and receipt of relevant approvals

  • Published: May 30, 2022 2:40 PM IST
Tata Safari

Tata Motors is planning to take over one of Ford India’s manufacturing plants to boost its passenger vehicle production. The company has signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of Ford’s Sanand vehicle manufacturing facility. Also Read - Tata Motors launches Tata Tigor XM variant with iCNG technology at Rs 7.40 lakh: Details here

Under this acquisition, Tata Motors will take over Land & Buildings, the Vehicle Manufacturing Plant, Machinery and Equipment, and even transfer all eligible Ford Sanand vehicle manufacturing operations, and employees. The new manufacturing unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition. Also Read - Tata Motors EV subsidiary buys Ford India’s Gujarat plant for Rs 726 crore

The current acquisition will be subject to the signing of definitive agreements and receipt of relevant approvals. Additionally, Ford India will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from TPEML. Also Read - Tata Motors bags order of 1500 electric buses from Delhi Transport Corporation: Check details

Tata plans to further its “Forever New” portfolio of cars with more products. Tata Motors has also claimed to make more investments in electric vehicles. In order to meet the demand, Tata will be increasing capacity utilisations to sustain the growth.

Tata has plans to invest in the new machinery and equipment at the Ford factory in Sanand. Tata will establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units, according to the company. The company expects to reach this capacity in a few months.

Announcing the signing of this MoU, Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said, “This MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition. This effort reinforces Gujarat’s image as a progressive, investment-friendly state and its resolve to further strengthen the state as a leading automotive hub in the country. It will boost the confidence of the international investment community, reinforce Gujarat’s position as the top investment destination in the country and further strengthen the Atmanirbhar vision of our Hon’ble Prime Minister.”

Speaking on the occasion, 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 expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: May 30, 2022 2:40 PM IST

new arrivals in india