Tata Motors looks to buy Ford India plant in electric vehicle push

Tata Motors logos are pictured outdoors their flagship showroom in Mumbai Might 28, 2013. Image taken Might 28, 2013. REUTERS/Vivek Prakash

BENGALURU, Might 30 (Reuters) – Indian automaker Tata Motors Ltd (TAMO.NS) has signed an settlement to probably purchase a Ford Motor (F.N) manufacturing facility within the western state of Gujarat because it appears to be like to ramp up its manufacturing of electrical automobiles.

The proprietor of Jaguar Land Rover already dominates India’s fledgling electrical automotive market, which the federal government is making an attempt to develop by providing firms billions of {dollars} in incentives.

The memorandum of understanding introduced on Monday covers the land, property and all eligible workers working on the Sanand facility. The monetary particulars of the settlement weren’t disclosed.

Tata stated it could spend money on new equipment and tools on the plant via its electrical mobility unit and expects the ability to have a manufacturing capability of 300,000 items annually after the works full. The capability could be elevated to greater than 400,000 items.

“Rising buyer desire for passenger and electrical automobiles made by Tata Motors has led to a multi-fold development … this potential transaction will assist enlargement of capability,” stated Shailesh Chandra, managing director of Tata Passenger Electrical Mobility Ltd.

Tata final yr raised $1 billion from personal fairness agency TPG for its EV enterprise and competes within the house with Mahindra and Mahindra (MAHM.NS).

The curiosity within the Sanand plant follows U.S. automaker Ford’s choice final yr to cease manufacturing in India, the place it had a lower than 2% share of the passenger car market and had struggled to show a revenue for greater than 20 years.

Ford stated earlier this month it was searching for choices for its two factories within the nation whereas shelving plans to make electrical automobiles in India for exports. learn extra

Reporting by Chandini Monnappa in Bengaluru; modifying by Uttaresh.V and Aditya Soni

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