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Tata Motors To Manufacture 2 L Electric Cars, EVs At Ford India Plant

Tata Motors will be investing Rs 2,000 crore in the Sanand-based manufacturing facility in Gujarat previously owned by Ford India

Tata Nexon Electric At Ford Plant
Image – National Geographic

Times of India claims that Tata Motors has taken over the Ford India plant in Sanand. Tata Motors has not yet officially announced the take over. As per the report, Tata Motors has acquired Ford India’s manufacturing facility based out of Sanand in Gujarat for an undisclosed amount.

There have been talks of the Indian automaker taking over the American auto giant’s plants in India. The latter quit retail and manufacturing operations in the country in September last year. Tata Motors is planning to invest an additional Rs 2,000 crore in the newly acquired facility. The homegrown carmaker intends to manufacture two lakh electric vehicles (EVs) by 2026 at the Sanand factory. Ford also owns a vehicle and engine manufacturing plant in Maraimalai Nagar, Tamil Nadu.

Tata Motors Acquiring Ford India’s plant

As a part of this takeover, Tata Motors will not be laying off any of the existing employees of Ford in this facility. The facility has given employment to as many as 23,000 personnel either directly or indirectly. The company already owns a manufacturing facility in Sanand, built to manufacture Tata Nano. Ford India plant is just opposite the Tata Motors plant in Sanand.

This plant currently serves as a manufacturing hub for the brand’s EVs and other models like Tiago and Tigor. As of now, Tata Motors produces 10,000 EVs per year, at its existing Sanand-based factory. This facility has an overall production capacity of 1.5 lakh units per annum. Tata Motors was one of the first major automakers to enter Sanand with an investment of Rs 4,500 crore to build India’s most affordable car in the form of Nano.

Tata CURVV Electric SUV Coupe Concept
Tata CURVV Electric SUV Coupe Concept

Concessions sought by Tata Motors

Tata Motors has also sought concessions in land transfer rate where it has proposed to pay 20% of jantri rate of the land which translates to Rs 66 crores. It has also asked for balance eligible incentives which were promised to Ford till 2030. Report further reveals that the state government has given its nod to these concessions sought by Tata Motors.

Earlier this year, both Tata Motors and Ford India submitted a consent proposal for transfer of ownership of the latter’s manufacturing plant to the former. The high-powered committee met recently and gave a nod to this proposal including concessions sought by Tata Motors as part of this deal. The proposed takeover is expected to become a major landmark in EV production in the country.

Tata Motors as an EV manufacturer

Tata Motors is currently the largest EV manufacturer in the country with two mass-market products in the form of Tigor EV and Nexon. In February this year, the brand sold a total of 2,264 units of battery-powered vehicles. The company recently previewed an upcoming Coupe Electric SUV in the form of Curvv Concept which is expected to go on sale by 2024.

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