Tata Motors All Set To Buy Ford’s Sanand Manufacturing Plant – Report

Tata To Buy Ford Factory 1

Tata and Ford have submitted a proposal for the transfer of ownership of Ford’s vehicle assembly plant in Sanand, Gujarat to Tata

Tata Motors and Ford Motor Company have submitted a proposal for the transfer of ownership of the latter’s production facility near Ahmedabad. Ford announced its exit from India late last year owing to a huge loss incurred and it did send shockwaves across the automotive industry. Its manufacturing unit in Sanand will now be taken over by Tata reportedly.

The legal duties are expected to clear as early as next week for Tata to takeover the Sanand plant as a high-power committee framed by the Gujarat government will likely sanction the proposal. According to a report that emerged on the internet, Tata Motors has been in conversation with Ford for a takeover ever since the abrupt departure was announced.

A high-power committee was established in April 2018 to discuss the problems regarding the implementation of big projects and during the meeting next week, the transfer proposal will be discussed in detail as a deal will be finalised. It is yet to be seen the kind of incentives Tata will get upon this takeover as added benefits could be provided.

2022 Ford Bronco Raptor 3

The American auto major invested around Rs. 4,500 crore to bring forth the vehicle assembly plant in Sanand with an installed capacity of 2.4 lakh vehicles and 2.7 lakh powertrains per year. The brand claimed to have endured an operating loss of around USD 2 billion over the last ten years in India, acting as a catalyst for its exit.

Tata’s existing production facility in Sanand rolls out the entry-level Tiago hatchback, Tigor compact sedan and Tigor EV electrified sedan. Upon setting up its plant, Tata invested around Rs. 4,500 crore with a capacity of 1.5 lakh passenger cars per year. Before exiting local operations, Ford contacted many companies including Volkswagen Group, MG Motor and Ola for contract manufacturing but an agreement could not be made.

Tata recently announced a massive investment of Rs. 15,000 crore as it is planning to launch as many as ten electrified vehicles over the next five years. Underlining its EV commitment, a dedicated EV-only subsidiary called Tata Passenger Electric Mobility Limited (TPEML) has also been put in place.