As Tata continues to ramp up its electric vehicle productions, the automaker has recently signed an agreement for the potential acquisition of the Ford Sanand plant.
Indian automaker Tata Motors is further expanding its operations with a potential acquisition of the Ford manufacturing plant located in the western state of Gujarat, India. The automaker is ramping up its production of electric vehicles.
A Memorandum of Agreement (MoU) was signed between Tata and Ford on Monday and the Government of Gujarat.
The potential acquisition covers the land and buildings, vehicle manufacturing plant, machinery and equipment, and all of the eligible employees. Tata did not disclose the financial details of the agreement.
The automaker said that it will invest in new machinery and equipment at the plant through its electric mobility unit and expects to have a production capacity of 300,000 units annually and increase to 400,000 units.
The automaker expects the process to be completed in a few months.
“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,” said Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility Ltd.
“Rising customer preference for passenger and electric vehicles made by Tata Motors 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.” Chandra added.
Ford said last year that it would stop production in India, where they have less than 2% of the market share of the passenger vehicle market. Earlier this month, Ford also announced the cancellation of its plan to produce electric vehicles in India.