Tata Motors has reportedly received permission from the Gujarat government to acquire Ford’s Sanand plant near Ahmedabad, Gujarat. according to a Times of India reportEarlier this week the Gujarat cabinet approved the proposal submitted by both the companies to go ahead with the deal. It will also enable Tata Motors to get all the benefits and incentives given to Ford at the time of commissioning of its plant. However, this approval is only a green signal from the government, and the two companies will have to work out an agreement before the deal can be ratified.
Read also: Ford to shut down local production in India, both plants closed
Ford will continue to sell cars brought to India via the CBU import route, and will include premium offerings like the Mustang Mach-E
Ford announced last year that it Will no longer manufacture cars in India, as the American carmaker did not find it profitable to continue its operations in the country. As a result, both Ford’s factories in India were non-functional and Tata Motors has since shown interest in taking over the plant in Sanand. Ford will continue to sell cars in India through the CBU route, but it will only include premium offerings like the Mustang Mach-E.
Read also: Tata Motors to make 2 lakh EVs annually at Ford’s Sanand plant: Report
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Upon completion of the acquisition of the plant, Tata Motors reportedly plans to manufacture 2 lakh EVs per year at Sanand, and is planning to invest an additional ₹2000 crore to manufacture the EVs. The Indian manufacturer wants to achieve this target by 2026, as it plans to launch several electric cars in the coming years. Tata Motors has reportedly also assured the Gujarat government that no employee will be laid off from the Ford plant.
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