Tata Motors is preparing to acquire Ford India’s passenger vehicle manufacturing plant located in Sanand. This plant of Ford is 40 km away from Ahmedabad. According to the report, both the companies have taken ownership of Ford’s passenger vehicle manufacturing plant.
On one hand, while the American giant Ford, which makes a powerful SUV from hatchback and compact SUV to Endeavor, has closed its car business in India, Tata Motors is growing very fast in the car market. Now Tata is preparing to acquire Ford India’s passenger vehicle manufacturing plant located in Sanand. This plant of Ford is 40 km away from Ahmedabad. According to the report, both the companies have submitted a consent proposal to transfer the ownership of Ford’s passenger vehicle manufacturing plant to Tata Motors.
A high-powered committee (HPC) appointed by the Gujarat government may approve the proposal. This will clear the way for Tata Motors’ takeover of the Ford plant next week.
According to media reports, a source close to the matter said that an HPC was constituted by the Gujarat government in April 2018 to resolve the issues related to the implementation of large projects. The committee is headed by the Chief Minister.
During next week’s HPC meeting, Ford India’s proposal to transfer its vehicle assembly plant in Sanand to Tata Motors and issues related to the transfer will be discussed and finalized in detail.
However, it is too early to say whether Tata Motors will get incentives and benefits for the new plant it is set to acquire. In fact, the talk of incentives and benefits is also being said because when Tata Motors started the Nano plant in Sanand, Tata got tremendous incentives and benefits.
Ford Motor Company had invested Rs 4,500 crore to set up the plant. The annual production capacity of this plant is 2.4 lakh units as well as 2.7 lakh engines. Tata Motors also invested Rs 4,500 crore in its manufacturing plant, which has a production capacity of 1.5 lakh units per annum. This unit produces Tata Tigor, Tiago, and Tigor EV cars.