Tata Motors all set to acquire Ford’s Sanand Plant
By Lokmat English Desk | Published: March 20, 2022 06:43 PM2022-03-20T18:43:40+5:302022-03-20T18:43:40+5:30
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Tata Motors is all set to takeover Ford India’s passenger vehicle manufacturing plant in Sanand, which is situated 40km from Ahmedabad.
It is reported that both the companies have submitted a consented proposal for transfer of ownership of Ford’s passenger vehicle manufacturing plant to Tata Motors.
A high-power committee (HPC) appointed by Gujarat Government is likely to give a nod to the proposal. This will clear the pathway for Tata Motors’ takeover of the Ford’s plant next week.
Speaking to ET Auto, a source closed to the development said, “An HPC was formed by the Gujarat government in April 2018 to resolve issues related to implementation of large projects.
The committee is chaired by the chief minister. During the HPC meeting scheduled next week, the proposal of Ford India to transfer its vehicle assembly plant at Sanand to Tata Motors and issues related to the transfer will be discussed at length and finalised.”
It is early to comment whether Tata Motors will gain the incentives and benefits for the new plant it is set to acquire. As a reminder, Tata Motors had enjoyed the exceptional incentives and benefits during the starting the Nano plant at Sanand.
Ford Motor Company had invested 4,500 crore to set up the plant, which has a manufacturing capacity of 2.4 lakh units along with 2.7 lakh engines per annum.
Tata Motors had also invested 4,500 crore at its manufacturing facility, which has a production capacity of 1.5 lakh units per annum. This unit currently produce Tigor, Tiago and the Tigor EV variants.
Tata Motors Limited is an Indian multinational automotive manufacturing company, which is part of Tata Group. The company produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, construction equipment.
