The acquisition of Ford's plant will boost Tata's total production capacity at its Sanand facility to 3.9 lakh units per annum.
The government of Gujarat has cleared the proposal submitted by Tata Motors to acquire Ford India's manufacturing unit in Sanand. It is said that an MoU will be signed on May 30, 2022.
According to media reports, the cabinet has issued a no-objection certificate to the proposal. It would enable Tata Motors to reap the benefits extended to Ford when the plant was set up.
Tata Motors had been in the race to acquire Ford's manufacturing unit in India following the latter's exit from the market. The Sanand plant has been sitting idle since April this year.
Tata's existing facility at Sanand has an annual production capacity of 1.5 lakh units. The acquisition of Ford's plant will add another 2.4 lakh units for a total capacity of 3.9 lakh units per annum.
Source: ET Auto