Tata Motors Ltd has signed an agreement with Ford India Private Limited (FIPL) for the potential acquisition its Sanand vehicle manufacturing facility in the Indian state of Gujarat. Tata intends to invest into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles.
With the proposed investments, it would establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units.
Tata says this potential acquisition will help it accelerate its electric vehicle manufacturing capacity.
This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition.
Tata is pioneering India’s electric vehicle (EV) transition, leveraging the synergy between the Group companies and playing an active role liaising with the India Government in developing the policy framework.
Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, says, “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.”
Dr. Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, adds: “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.”
With operations in India, the UK, South Korea, Thailand, South Africa and Indonesia, supported by a strong global network of over 103 subsidiaries, 11 associate companies, 4 joint ventures and 2 joint operations as on December 2021, Tata Motors’ commercial and passenger vehicles are marketed in countries, spread across Africa, Middle East, South & South East Asia, Australia, South America, Russia and other CIS countries.