India’s Tata Motors has signed an agreement with Ford India for the acquisition of its Sanand vehicle manufacturing facility in the Indian state of Gujarat. The deal is designed to accelerate Tata’s electric vehicle manufacturing capacity and reinforces its role in pioneering India’s EV transition.
With proposed investments in new machinery and equipment, Tata plans to establish a production capacity of 300,000 units per annum, scalable to more than 400,000 units.
The Ford unit is adjacent to an existing Tata manufacturing facility. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility 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 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 from the Government of Gujarat, adds, “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.”