Tata is expected to pump in Rs 2,000 crore into transforming the Ford plant at Sanand, Gujarat, into an electric vehicle (EV) production hub.
While Tata Motors will be investing heavily on the existing infrastructure, to be able to make the Ford plant capable of manufacturing about two lakh EVs a year, it has assured that it has no intention of laying off any of the employees who have been working at the facility for Ford India till now.
The investment is aimed to make the facility a full-fledged EV production hub by 2026, churning out two lakh units annually.
Presently, Tata is producing about 10,000 EVs — Tigor and Tiago models — at a plant in Sanand, which used to earlier manufacture the Nano.
The Ford plant has a capacity to roll out over two lakh cars every year. It used to manufacture various car models, including Aspire, Figo and Freestyle at this plant before closing the same. It closed down the facility in Chennai also. Ever since then, discussions have been on about Tata acquiring the Sanand plant from Ford.
Tata Motors is presently in talks with the Gujarat government to formalise the acquisition and related conditions and incentives, which Ford was eligible for.
The Ford plant employed about 3,000 people directly. The Gujarat government hopes that this acquisition will inspire other manufacturers, local as well as international, to establish their hubs in the area, generating more employment opportunities.