As per the tweets, Tata Passenger Electric Mobility has signed agreements with the Gujarat government to purchase Ford’s Sanand production plant. The pending sale will comprise the Sanand car production factory, as well as land, buildings, machinery, and equipment, as well as the transfer of all qualified Ford India Sanand vehicle manufacturing personnel.
Ford Motor Company started in September 2021 that it would close its production units in India, citing operating losses of more than $2 billion over the previous ten years. Furthermore, the supply of new vehicles had been substantially lower than expected. The vehicle production factory in Sanand and the engine and vehicle assembly plant in Chennai are the two Ford facilities in the country. The proposed partnership with Tata Motors is limited to the Sanand factory.
We also came to know that Tata Motors will pay for new gear and equipment to commission and prepare the unit for vehicle production. With this particular investment, it will be able to build a 300,000-unit-per-year installed capacity that can be scaled up to over 400,000 units. According to the company, this will take a few months.
Moreover, Tata Passenger Electric Mobility and Ford India are anticipated to sign a tentative agreement for the contract over the following few weeks. On Monday, Tata Motors’ stock jumped more than 3%, closing at Rs 442.70 in the afternoon trade. The broader BSE Sensex increased by 1.8%.
