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Tata Motors to operationalize Ford's Sanand unit in Gujarat

2023-02-08

According to the company's president of the passenger car division, Tata Motors plans to start up the Gujarat-based manufacturing facility it purchased from Ford over the next 12 to 18 months in order to increase its production capacity.

The automaker's affiliate completed the acquisition of Ford India's Sanand manufacturing facility earlier this month. Ford India Pvt Ltd's (FIPL) Sanand facility in Gujarat would be acquired by the business's unit Tata Passenger Electric Mobility Ltd (TPEML) for $7260 million, the company stated in August of last year.

Tata Motors had previously stated that the acquisition is timely and advantageous for all parties involved as its manufacturing capacity is approaching saturation. The Sanand factory can produce up to 0.42 million units annually from its current capacity of 0.3 million.

TPEML is in the process of making the necessary expenditures to modify the plant to accommodate the current and next vehicle platforms of the Mumbai-based manufacturer. The building is close to Tata Motors' current Sanand manufacturing location.

Shailesh Chandra, managing director of Tata Motors' passenger vehicle and electric vehicle division, stated during an analyst call that the business also has the ability to debottleneck capacities at its two current plants in Pune and Sanand by an extra 10-15%.