By Tata electric passenger mobility limited will take over the manufacturing plant of Ford in Sanand, Gujarat on January 10, 2023. The acquisition is considered for a total of 726 crore INR. Tata Motors already own a plant in Sanand so their acquisition of Ford’s plant will be easy. With the new plant, Tata Motors could increase its production up to 4,20,000 units per annum so as to meet the customer demand, and hence eventually it will reduce the waiting period for its vehicles. This will largely reduce the manufacturing constraints of Tata Motors.
The agreement between Tata Motors and Ford includes land, a vehicle manufacturing plant, machinery, and equipment along with all eligible employees. The agreement also states that even after Tata Motors takes over the Ford plant it will continue its power train manufacturing there by leasing the land and machinery under terms and conditions and it is also conveyed that none of Ford’s employees will suffer and Tata Motors conveyed that eligible employees from Ford will be taken by Tata Motors once Ford stops its complete operation in India. The plant offers 3,043 direct and 20,000 indirect employees.
Ford India officially stopped its retail operations in India by September 2022 even though Ford tried to stay in the Indian market it couldn’t make it possible. Ford India offered very good driving machines in the country like the Fiesta, EcoSport and Figo to name but the American manufacturer failed to update these models at regular intervals while the competition moved on and the lack of vision by the people who run the business in India. So the board took the decision to exit the Indian market instead of making losses.
With the acquisition of Ford’s plant, Tata Motors is expected to bring down the waiting period for its vehicles. Tata Motors is becoming a major player in the country in both ICE vehicles and electric vehicles. The electric vehicles of Tata Motors are seen average bookings of 5000 to 6000 units. But with the current production plant, the carmaker is able to produce only half of its demand. Once Tata Motors is all set to manufacture its EVs in Ford’s plant in Sanand it will largely reduce the waiting period and it will enable the brand to reach its customer demand.
