Tata Motors Acquires Ford’s Gujarat Plant For Expanding EV Business

The facility is adjacent to Tata Motors’s existing plant for passenger vehicles

• Tata Motors Electric Mobility acquires the Sanand plant of Ford India, for a sum of Rs 725.7 crores plus taxes.

• Deal includes the entire land, vehicle manufacturing plant, and also transfers all employees of Ford’s manufacturing operations.

• The manufacturing capacity of the Ford plant is currently at 3 lakh units per annum, and scalable to 4.2 lakh units.

• The new plant will help Tata with its 10 upcoming electric car launches, which are planned till 2025.

Tata Motors Electric Mobility Private Limited has acquired Ford’s Sanand plant in Gujarat for a sum of Rs 725.7 crores (excluding taxes). The talks for this plant were rumoured to be ongoing from the time Ford ceased its Indian production in 2021.

As per the agreement between Tata Motors and Ford, the former will acquire the entire land and buildings situated inside the plant, the vehicle manufacturing plant with machinery and equipment, and also get all the employees of Ford’s vehicle manufacturing operations.

Ford will, however, continue to operate its powertrain manufacturing by Tata leasing back the land and buildings of the plant. The American carmaker is likely to continue manufacturing its Dragon engines in the country for export purposes.

• Upcoming Electric Cars in India

The manufacturing capacity of the Ford Gujarat plant stands at 3 lakh units per annum and is scalable to 4.2 lakh units. Tata will use this space to explore and expand its electric mobility portfolio. The carmaker is planning around 10 electric vehicles by 2025, including the recently revealed Curvv and Avinya concepts. With a dedicated facility, Tata could keep the waiting period in control for its upcoming electric car launches. Its most popular EV, the Nexon EV, is built along the same line as the regular Nexon with an average waiting period of up to six months.