Tata Motors Could Have A Second Manufacturing Facility In Sanand

• Tata may acquire Ford’s Sanand plant, in its entirety.
• However, Ford will continue manufacturing engines, by leasing from Tata.

Big news coming in from the Tata HQ in Mumbai, of the carmaker likely set to take over Ford India’s Sanand plant, a long-time rumour that has been confirmed today. The homegrown auto manufacturer has signed a Memorandum of Understanding (MoU) with the Gujarat government for the same.    

Under the MoU, if things go in the right direction, Tata Motors will take over the following assets from Ford India:

• Land and buildings

• Plant, machinery, and equipment for vehicle manufacturing

• Transfer of all eligible employees

Ford will still continue to manufacture engines from the Sanand facility, but the engine plant will be leased from Tata Motors for the same. 

Commenting on the latest developments, Shailesh Chandra, MD, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “This MoU further reinforces our commitment to the state by creating more employment and business opportunities. 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.”

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Tata Motors says its existing range of ICE and electric vehicles have helped it grow substantially in India. And its sales numbers are proof, where Tata overtook Hyundai to grab the second spot (in terms of sales) from Hyundai on select occasions. The new manufacturing plant will help Tata expand its overall operations and sales. 

Ford’s Sanand plant has a capacity to manufacture three lakh units annually and that number could go up to four lakh as well. That said, all this will have to wait and could take time as this entire process could take some time after its finalisation.