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Tata Motors Acquires Ford India Plant to Manufacture 2 Lakh EVs: Gujarat

Tata acquires Ford India plant in Gujarat

Tata Motors will not lay off the 23,000 Ford employees working in the plant, associated directly or indirectly with the manufacturing facility. Tata Motors Plant to launch 10 new EVs by 2030.


  • After Ford ceased its India operations, Tata Motors acquired the facility with a vision to produce 2L EVs. 
  •  Tata Motors plant is likely to retain all the Ford employees working in the plant. 
  • Tata Motors has appealed to the Government for some concession in the transfer rate and incentives.

Gujarat: Tata Motors, an Indian multinational automotive manufacturing company has acquired Ford India’s manufacturing plant at Sanand in Gujarat. There have been rumors about Tata motors taking over Ford’s plant after Ford ceased its India operations. 


Tata Motors is likely to invest an additional Rs. 2,000 crore in the newly acquired Tata motors plant in Sanand, Gujarat to manufacture 2 Lakh EVs by 2026 for the ever-growing Indian EV market.

Post the takeover, Tata Motors plant is likely to retain all the 23,000 employees hired by Ford India, associated directly or indirectly with the manufacturing plant in Sanand. They will work together with Tata Motor’s employees working in the Tata Manufacturing plant opposite to Ford’s in Sanand. 

Tata’s Nano plant in Sanand currently manufactures over 10,000 EVs a year including most of the EV models along with Tata Tiago and Tigor. With a vision to make the most affordable car in India, Tata Motors entered Sanand with an investment of Rs 4,500 crores, and currently has a production capacity of over 1.5 Lakh units.

Tata new electric vehicle factory in Gujarat
Tata Motors takes over Ford India in Gujarat to manufacture 2 Lakhs new EVs by 2026

Tata Motors has appealed to the state government to offer some concession in the land transfer rate and agreed to pay a 20% Jantri rate of land which is 66 Lakhs in amounts. Along with concession in the transfer rate, Tata Motors has appealed to balance the incentives offered to Ford until 2030. 

Recently, Tata Motors and Ford submitted proposals for the transfer of ownership of the manufacturing plant, which is reported to be accepted by the state government along with the concession sought by Tata Motors.


New Tata Curvv Coupe Electric car launched in India | EV sales in India during 2021-2022

The state government is very optimistic about the new agreement and believes that it would likely create a revolution in Indian EV production. The new production facility is likely to attract local and global players to set up more such facilities in the state. Acceptance of the terms of this agreement is done with a vision to accelerate EV adoption in India. 

Tata Motors Nexon electric car
Tata Nexon EV’s launch in India

Tata motors are currently the largest manufacturer of electric vehicles in India with an 80% market dominance in sales and R&D. In the month of March 2022, Tata leads the EV sales segment with a total of 3324 units monthly sales. 

Tata Curvv Coupe electric car launch in India
Tata Curvv Coupe electric car launch in India with an extended battery and range

To offer more choices to Indian consumers and meet the growing demand for EVs, Tata motors unveiled a new electric SUV Tata Curvv Coupe EV for the Indian market on 6 April 2022. Tata Curvv Coupe is likely to feature Tata’s next-generation steering design and a bigger battery pack to offer an extended range offered by any other Tata EVs so far.

Content strategist at Ecogears
Mamta, currently pursuing her masters in Computer applications, has a keen interest in electric vehicle dynamics. She talks about electric vehicles, government policies, and recent changes in EV ecosystem.
Mamta Upadhaya

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