Tata Motors Acquires Ford India's Sanand Production Facility

It will develop electric vehicles at this manufacturing unit with an installed capacity of 300,000 units per annum
  • Published On: 30/05/22
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Tata Motors

News Highlights

  • This facility is adjacent to Tata's existing manufacturing unit
  • Tata Motors reportedly will invest Rs 2000 Crores in Sanand plant
  • The Gujarat state cabinet recently cleared the takeover of this site

Tata Motors has signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of Ford India's Sanand production facility. The purchase will include Land & Buildings, Vehicle Manufacturing Plant, Machinery and Equipment and transfer of all eligible employees at Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals. The American automaker will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from Tata Motors.


Tata Motors intends to invest into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles. It will develop electric vehicles at this manufacturing unit with an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. This MOU will be followed by signing of the definitive transaction agreements between Tata and Ford over the next few weeks. It has been learnt that the home-grown automaker will make an investment of Rs 2000 Crores in the facility while aiming to roll out 2 Lakh electric vehicles annually by 2026. The Gujarat state cabinet recently cleared the takeover of this site by Tata Motors.



Speaking on the occasion, Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “Tata Motors has had a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities.


Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”

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Mayank Gupta
Author Mayank Gupta

A mechanical engineering dropout by choice, Mayank has been in the auto journalism biz for the past 8 years. He is currently working as an Associate Editor at Droom Discovery and covering each and every aspect of the auto industry. He has worked with a plethora of renowned Auto brands in his illustrious career so far. Being a student of English Literature, his mantras of success are the Never-Say-Never attitude and self-confidence. Mayank likes to travel, read books and listen to music during his free time.

  • Published On: 30/05/22
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