Tata Motors looks to buy Ford India plant in electric vehicle push
Reuters
Published May 30, 2022 02:56AM ET
Updated May 30, 2022 03:50AM ET
BENGALURU (Reuters) -Indian automaker Tata Motors (NYSE:TTM) Ltd has signed an agreement to potentially buy a Ford Motor (NYSE:F) manufacturing facility in the western state of Gujarat as it looks to ramp up its production of electric vehicles.
The owner of Jaguar Land Rover already dominates India's fledgling electric car market, which the government is trying to grow by offering companies billions of dollars in incentives.
The memorandum of understanding announced on Monday covers the land, assets and all eligible employees working at the Sanand facility. The financial details of the agreement were not disclosed.
Tata said it would invest in new machinery and equipment at the plant through its electric mobility unit and expects the facility to have a production capacity of 300,000 units each year after the works complete. The capacity can be increased to more than 400,000 units.
"Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth ... this potential transaction will support expansion of capacity," said Shailesh Chandra, managing director of Tata Passenger Electric Mobility Ltd.
Tata last year raised $1 billion from private equity firm TPG for its EV business and competes in the space with Mahindra and Mahindra.
The interest in the Sanand plant follows U.S. automaker Ford's decision last year to stop production in India, where it had a less than 2% share of the passenger vehicle market and had struggled to turn a profit for more than two decades.
Ford said earlier this month it was seeking options for its two factories in the country while shelving plans to make electric vehicles in India for exports.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.