Following the news of Tata Motors Ford’s acquisition of the manufacturing facility in Gujarat, more revelations about the plan began to emerge. In recent developments, it has been revealed that Tata Motors wants to invest Rs 2,000 crore in this new manufacturing facility to make it a hub for its new generation electric vehicle production. Tata Motors plans to build 2 lakh electric vehicles a year at the new plant by 2026.
By this information Itaoto Tata arrives just days after the unveiling of its all-new Curvv concept, which will build a mid-sized electric SUV on top of the Nexon EV. Currently, Tata Motors manufactures Nexon EVs at its Pune plant and Tiger EVs at its Sananda plant, located near Ford’s manufacturing facility. In addition to Tigo’s EV, Tata Motors’ existing manufacturing plant, which was originally set up for nano production, is happily a manufacturing hub for compact cars like the Tiago and Tigor.
Tata Motors has reportedly signed an agreement with Ford India under which it will not lay off any of its existing employees while the manufacturing facility was under Ford India’s control. In order to successfully acquire the plant, Tata Motors is currently in talks with the state government, including resolving the conditions for maintaining the incentive balance promised to Ford India by 2030.
Tata Motors to transform Ford’s plant
Even the state government is keen to hide Ford’s production facility as an EV hub in Tata Motors’ new plan. A spokesman for the Gujarat government said the proposed takeover would encourage more local and global manufacturers to set up bases around manufacturing plants, which would only create more revenue and employment opportunities.
Launched in 2015, the Ford Motor Company’s manufacturing assembly is pleased to provide direct employment to about 3,000 employees, all of whom will be retained by Tata Motors if they acquire the plant. Ford has invested Rs 4,500 crore to set up this vast facility, which has the capacity to produce 2.4 lakh units of cars and 2.7 lakh engines per year.
Ford used this production facility to make compact cars like the Figo, Aspire and Freestyle. In September 2021, Ford India decided to shut down the local manufacturing process at one of its two plants in Chennai and Sanand. Since then, talks have been underway between Tata Motors and Ford India to transfer ownership of the Sananda manufacturing facility to the former.