Ford Sanand Plant Will Help Tata Motors to Accelerate EV Production

On Monday, Tata Motors subsidiary Tata Passenger Electric Mobility Ltd (TPEML)  signed a tripartite memorandum of understanding with Ford India Pvt Ltd (FIPL) and the Gujarat government to take over the passenger vehicle factory from Ford in Sanand.

This will help Tata Motors accelerate its enhancement in the production of personal vehicles (PV) and electric vehicles (EVs). The unit is located adjacent to Tata Motors' existing PV manufacturing unit in Sanand, which will facilitate a smooth transition, said Shailesh Chandra, CEO of TPEML.

With this, Ford's Sanand plant in India is paving the way for electric vehicle production. This is followed by the signing of definitive trading agreements between TPEML and FIPL in the coming weeks, Tata Motors said in the statement.

The Memorandum of Understanding does not mention the price Tata Motors will pay. Taking into account liabilities, including taxes, depreciation, and salaries, analysts estimate it at Rs 600-700 crore.

Ford India will continue to produce engines at the plant leased by Tata Motors to the company. Therefore, water, electricity, wastewater treatment plant, and other utilities will be shared by the two companies.