Tata Motors is all set to take over the Ford manufacturing plant in Gujarat. After the exit of Ford in 2021, the process of taking the Plant was put in motion. Tata Motors already has a manufacturing unit in Sanand just on the opposite side of the Ford unit.
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Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited had already signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of Ford’s Sanand vehicle manufacturing facility including the land & buildings vehicle manufacturing plant, machinery and equipment and transfer of all eligible employees of Ford’s Sanand’s vehicle manufacturing operations.
For the agreement, Tata Motors has proposed a concession of 20% of the Jantri rate which translates to Rs 66 crores to the state government. And have also asked for the balance eligible incentives which had been extended to Ford India till 2030. The Gujarat State government has accepted both terms. Tata Motors has also ensured the previous Ford employees a job opportunity. A total of 23,000 employees were working at Ford India. Tata has announced that none of these employees will lose their jobs and will be retained.
The Ford India vehicle manufacturing site at Sanand is a state-of-the-art site. TPEML has planned to invest in new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles. Tata has planned to establish an installed capacity of 300,000 units per annum, which would be capable for more than 400,000 units. This MOU for a potential acquisition of this unit is a win-win for all stakeholders and helps Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity. And being close to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition.