No Ford India Employee Will Be Fired By Tata In Gujarat! Ford Factory Will Be Used For Making Electric Cars By Tata
Tata is reportedly planning to transform the Ford’s facility in Sanand Gujarat into a production hub for electric vehicle models. The company plans to produce two lakh electronic vehicles every year at the plant by the year 2026.
We had previously reported that Tata Motors Ltd. is developing a new electric vehicles division, and for that, the largest vehicle maker of India is reportedly raising as much as 1 billion USD. As per sources close to the development, the business has been valued at around 7 billion USD.
Tata Motors To Produce EVs in Gujarat; Invest Rs. 2000 Crores
As per the newest reports, Tata plans to invest Rs.2000 crores in the manufacturing site in Gujarat. Additionally, after acquiring the factory, the automaker plans to retain all of the employees of Ford India who have worked at the company till now. As many as 23,000 personnel working with Ford Sanand plant.
As of now, Tata is manufacturing 10,000 electric vehicles at its plant in the same town which previously used to manufacture Nanos. As we know, this factory is capable of producing a maximum of 1.50 lakh units in a year, and currently produces Tata’s models like Tiago, Tigor, and Tigor EV models.
The existing infrastructure at the manufacturing facility of Ford India will be of huge help to Tata motors. Ford India had already invested Rs.4500 crores in the plant over the last 10 years. The facility can churn out 2.40 lakh cars per year.
Tata Motors Plans To Produce 50,000 EVs by 2023?
Seeking concessions in the land transfer, Tata Motors has proposed to pay 20% of jantri rate of the land which translates to Rs 66 crores. It has also asked for balance eligible incentives which were promised to Ford till 2030. The concessions sought by Tata Motors have received a nod from the government.
Earlier this year, a consent proposal for the transfer of ownership of Ford’s manufacturing plant was submitted by Tata & Ford. The high-powered committee met recently and gave a nod to this proposal including concessions sought by Tata Motors as part of this deal. This proposed takeover is expected to become a major landmark in EV production in the country.
Tata Motors has already sounded out vendors on an assured production plan of 50,000 EVs in the financial year 2023 and then go on to 125,000-150,000 units annually in the next two years.
If the company delivers on the targets, there will be a revenue generation of Rs. 50,000 crores for the company from the EV business.