Tata Motors Gets Nod From Gujarat Government To Takeover Ford's Sanand Plant - Report

Tata Motors has reportedly received the go ahead from the Gujarat government to takeover Ford's Sanand plant near Ahmedabad, Gujarat. According to a report by Times of India, earlier this week Gujarat cabinet cleared a proposal submitted by the two companies to take the deal forward. This will also enable Tata Motors to receive all the benefits and incentives granted to Ford at the time of the launch of its plant. However, this approval is only a green signal from the government, and the two companies will have to work out an agreement amongst themselves before the deal can be confirmed.

Also Read: Ford To Cease Local Production In India, Shut Down Both Plants

Ford will continue to sell cars in India brought in via the CBU import route, and will include premium offerings like the Mustang Mach-E

Ford announced last year that it would no longer manufacture cars in India, as the American carmaker didn't find it profitable to continue its operations in the country. This resulted in both of Ford's factories in India being non operational, and Tata Motors has since shown interest in taking over the plant in Sanand. Ford will continue to sell cars in India via the CBU route, but this will only include premium offerings like the Mustang Mach-E.

Also Read: Tata Motors To Manufacture 2 Lakh EVs Annually At Ford's Sanand Plant: Report

Upon the completion of the takeover of the plant, Tata Motors reportedly plans to manufacture as many as 2 lakh EVs per year in Sanand, and is planning to invest an additional Rs. 2000 crore to make the facility EV ready. The Indian manufacturer wants to achieve this target by 2026, as it is planning to launch multiple electric cars in the upcoming years. Tata Motors has also reportedly assured the Gujarat government that none of the employees from the Ford facility will be laid off.