ET Auto says Tata Motors and Ford India have submitted a proposal to the Gujarat government to transfer ownership of the Sanand manufacturing plant.
Currently owned by Ford India, the plant uses 2.4 lakh units of vehicles and 2.8 lakh engines per year. Ford paid 4,500 crore for setting up this production facility. If all goes well, Tata Motors will take over Ford’s plant next week.
Tata Motors already has a happy manufacturing plant. They has also invested money. 4,500 crore for setting up the plant. The annual production capacity of the plant is 1.5 lakh units.
Tata currently uses the plant to make Tigor EV, Tiago and Tigor. Although TOI contacted Tata Motors about purchasing the new plant, they said, “We continue to explore potential options for our manufacturing facilities.”
Last year, Ford decided not to operate in the Indian market. They have reportedly lost $ 2 billion in operating losses over the past decade. There were many reasons behind this.
Ford has completed a joint venture with Mahindra. Moreover, Mahindra’s lineup in India was older than its competitors and it would have invested much more time and more to create a new product.
Ford said it is still evaluating products for the Indian market and will continue to provide services and support for existing products.