Monday 30 May 2022

Tata buying Ford India plant to boost EV status

Tata Motors is looking to purchase Ford’s automobile facility in Gujarat, India – to push its production of electric vehicles (EVs).

The Indian government is offering billions of dollars in incentives to companies to accelerate the EV agenda in the country, with Tata already a key player in the market.

The agreement in question, would include assets, land and employees of the facility to join Tata.

Ford has been considering dropping out of the Indian market for the last year, due to a lack of profits and role in the country.

Tata has taken this opportunity to grow its already dominant presence in South Asia, expecting the Gujarat facility to produce 300,000 units each year.

Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility, said: “Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth and this potential transaction will support expansion of capacity.”