Tata Motors has signed a memorandum of intent to acquire a Ford plant in the town of Sanand in Gujarat in western India. According to Automotive News Europe, this is due to the company’s desire to increase the production of electric cars: this segment of the market in the country is now actively developing, not the least thanks to tangible state support.
The agreement, the financial details of which are not disclosed, affects the land, assets located on it, and employees. Tata intends to invest in the re-equipment of the enterprise and the development of new models through its electric vehicle division. Upon completion of all works, the production capacity of the plant will be 300 thousand electric vehicles per year with the possibility of increasing to 400+ thousand.
Recall that last year Tata decided to invest heavily in electric vehicles, including using funds from third-party funds and the state. A division of Tata Passenger Electric Mobility Limited was created.
Ford decided to stop the plant in question last year: attempts to make a profit, undertaken for more than two decades, were not successful; the brand’s share in the local passenger car market was less than 2%. Earlier this month, the American company announced that it was considering various future options for its two Indian sites. At the same time, the idea of producing electric vehicles for export was shelved.
In mid-May, Tata updated the popular Nexon EV electric crossover. He received a more powerful motor and a battery of increased capacity.
Source: Automotive News Europe