Tata Motors through its subsidiary Passenger Electric Mobility Limited (TPEML) has signed a contract with Ford India to acquire Ford’s Sanand plant in the Indian state of Gujarat to be used for the production of electric vehicles.
The acquisition of Ford ole Tata plant is still subject to approval from the relevant authorities. The acquisition will increase Tata Motors’ electric vehicle production capacity to 300,000 units per year, which can later be increased to 420,000 units per year.
According to the press release, Ford India Private Limited (FIPL) will continue to operate the powertrain manufacturing facility at the site. However, control of the vehicle manufacturer will remain with TPEML.
“The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors’ strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment. It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited,
The acquisition of this plant will give Tata Motors the opportunity to double its electric vehicle production. According to reports. Tata Motors aims to more than quadruple electric vehicle production this fiscal year. Tata Motors sold 19,105 EVs In 2021/22, 353% growth from the previous fiscal year.
Tata Motors aims to launch 10 electric models by 2026 and invest about $2 billion in new vehicle architecture, technology and related infrastructure.
“Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring,” said Steve Armstrong, Transformation Officer of Ford Motor Company.
Tata Plans To Produce Its Own Semiconductor And EV Batteries
