Tata Motors Acquires Ford India's Sanand Production Facility

• Published On: 30 May 2022
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It will develop electric vehicles at this manufacturing unit with an installed capacity of 300,000 units per annum

Tata Motors has signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of Ford India's Sanand production facility. The purchase will include Land & Buildings, Vehicle Manufacturing Plant, Machinery and Equipment and transfer of all eligible employees at Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals. The American automaker will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from Tata Motors.

Tata Motors intends to invest into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles. It will develop electric vehicles at this manufacturing unit with an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. This MOU will be followed by signing of the definitive transaction agreements between Tata and Ford over the next few weeks. It has been learnt that the home-grown automaker will make an investment of Rs 2000 Crores in the facility while aiming to roll out 2 Lakh electric vehicles annually by 2026. The Gujarat state cabinet recently cleared the takeover of this site by Tata Motors.