Ford is selling one of its manufacturing plants in India, owned by Tata Motors, owner of Jaguar Land Rover, which wants to use it to produce EVs in the country.
The Sanand plant is located in the western state of Gujarat and came on the market recently as Ford announced that it would stop manufacturing vehicles in India, citing a market share of less than 2 percent. Ford struggled for more than two decades to gain market share before leaving two months ago.
According to Reuters, the sale of the plant will include the land on which it sits, all assets, as well as employees. The sale price was not disclosed, but the Economic Times reported that it could be closer to $ 100-150 million. In addition to government incentives, Tata has raised 1 1 billion from the private company TPG for its EV business.
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Shailesh Chandra, Managing Director, Tata Passenger Electric Mobility, said, “Customer preferences for passenger and electric vehicles made by Tata Motors have multiplied … This potential transaction will help expand the capacity.”
Tata Motors dominates the Indian electric car market and plans to expand it further with billions of dollars in incentives from the government. Production capacity is expected to increase to 300,000 units per year once new equipment is installed to increase EV production, soon increasing to 400,000 units.
The deal would not include Ford’s second factory in the country, which manufactures engines for the export market.