HomeCar NewsTata Motors To Takeover Ford Plant Where EcoSport Was Manufactured?

Tata Motors To Takeover Ford Plant Where EcoSport Was Manufactured?

Tata Buys Ford EcoSport Chennai Plant
Ford EcoSport image for reference.

Tata Motors has reportedly finalized deal to takeover Ford India’s car manufacturing plant in Chennai

Tata Motors share price has shot up more than 9% within the first hour of trading today, 7th Oct, 2021. At the time of market close yesterday, Tata Motors share was priced at about Rs 335. Right now it is trading at over Rs 365.

Early morning today, it was reported that Tata Motors has decided to take over Ford India manufacturing plant in Chennai. This news has probably sent the Tata Motors share price soaring in first hour of trading on Bombay Stock Exchange. Tata Motors has not confirmed the report officially.

A few days ago, it was announced that former Ford India MD, Anurag Mehrotra has joined Tata Motors CV business. Anurag resigned from Ford on 24th Sep 2021, about 15 days after Ford announced their India exit. 48 yr old Anurag is now the VP of Tata CV International Business & Strategy.

Both Tata Motors and Ford India also have a manufacturing plant in Gujarat. Coincidentally, these two plants are located next to each other on the outskirts of Ahmedabad city, in Sanand. From Tata plant, they produce Tiago and Tigor while Ford used to produce Figo, Freestyle and Aspire. At the Chennai plant, Ford used to manufacture EcoSport and Endeavour SUVs.

Tata Motos Buys Ford Chennai Plant
Tata Motors Chairman N Chandrasekaran at a meeting with Tamil Nadu Chief Minister, M. K. Stalin. Image – DTNext

Tata Group in Chennai

Since early this year, Tata Group has been making fresh investments into Tamil Nadu. In January, the TN Cabinet approved investments to the tune of Rs 5,763 crores by Tata Electronics in a project in Krishnagiri district for the manufacture of mobile phones.

Tata Consultancy Services (TCS) is also expanding its presence in Chennai with two new centers in Sipcot, Siruseri which will help create over 35,000 job opportunities. In September 2021, Tata Projects has also signed a contract for Rs 2,100 crores for Phase 1 of Chennai Peripheral Ring Road Project – Northern Port Access Road, connecting Ennore Port in North Chennai with Thatchur on AH-45.

Ford’s Decision to Quit India

Ford’s decision to stop all manufacturing operations in India could be the result of a proposed joint venture with Mahindra that fell through early this year. It was following this, that the company decided to wind down its manufacturing processes in the country and cut its operating losses that stood at more than $2 billion over the past 10 years.

There are around 4,000 employees at the Chennai plant that are affected by this shut down even as Ford has confirmed that it would work with employees, unions, suppliers, dealers and other stakeholders in Chennai and Sanand from where the company manufactures engines for export so as to ensure a fair deal. However, now with Tata Group likely to take over, as per latest round of talks, this should be a smoother transition.


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