Categories: Electric Vehicles

Tata to use Ford’s Sanand plant for EV production

In the recent past, we reported that Tata Motors could be planning to acquire Ford’s Sanand plant. Reports suggested that the companies have already submitted a proposal for the transfer of ownership. New reports now suggest that the Sanand plant will be used for electric vehicle production. Sources suggest that Tata plans to invest an additional INR 2,000 crore in the facility. Thanks to the additional investment, the brand will

be able to have a manufacturing capacity of two lakh electric vehicles by 2026. In addition to this, Tata Motors has reportedly assured the Government of Gujarat that the company will not be laying off Ford’s staff during the transition. 

Plant Acquisition and Employment

According to reports, Tata Motors has also sought a concession in land transfer rate. In addition to this, the company also proposed to pay INR 66 crore,

which is 20% of the Jantri rate. The balance amount has been asked for incentives that the government promised to Ford till the year 2030. Sources also suggest that the government has also accepted the brand’s proposals. Tata Motors will also be retaining all the staff from Ford’s Sanand production facility. This will lead to indirect employment of close to 23,000 personnel. 

Ford’s Sanand Production Facility

Ford’s Sanand manufacturing facility has been set up at the cost of INR 4,500 crore and is capable of producing 2.7 lakh engines per year. With Tata’s additional investment, its annual production will rise to around 3.9 lakh units per annum. It is also important to note that Ford will still use the Sanand production plant as a key export base for Ford’s Panther engines.

Tata Motors Electric Vehicles

Tata Motors is the country’s largest four-wheeler EV manufacturer. The brand’s offerings include the Nexon EV and Tigor EV, which are selling in good numbers. The brand’s EV also make up more than 50 per cent of the sales volume in the electric four-wheeler segment. Tata also recently unveiled the new CURVV electric concept, which will go into production next year, further expanding its EV portfolio.

Also Read: Tata CURVV Electric SUV Concept revealed


Published by
Nizam Shaikh