ford The company, which closed its India operations last year, will sell one of its factories to Tata Motors. Both parties have reported Automotive News signed the MoU that was announced on Monday (May 30).
The Ford factory to be acquired is located in Sanand, Gujarat, a state in western India. This purchase includes land, assets and employees, but the investment value is not disclosed.
Tata said it will invest in new machines and other equipment from the electric vehicle division. The Jaguar Land Rover owner said production capacity is estimated at 300,000 units per year when all construction work is complete and could be increased to 400,000 units.
“Increasing consumer preference and electric vehicles from Tata Motors has resulted in a doubling of growth…the potential for this transaction will support additional capacity,” said Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility.
Tata raised $1 billion from private equity TPG last year for its electric vehicle business and to compete with Mahindra and Mahindra.
Before deciding to cease factory operations in 2021, Ford had endured a difficult period in India for two decades, losing up to IDR 28 trillion. Not only the factory in Sanand was closed, but also the engine and vehicle assembly plant in Chennai.
Ford said this month it was exploring options for the latter two plants and was ruling out plans to manufacture electric cars in India for export.
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