Ford’s Sanand Plant to Enhance the Production Rate for TATA Motors

Tata Motors

In order to increase its production capacity, Tata Motors, a manufacturer of automobiles, plans to start up the Gujarat manufacturing facility it purchased from Ford in the next 12 to 18 months.

When asked about the production capacity at the company’s disposal, Shailesh Chandra, managing director of Tata Motors’ passenger vehicle and electric vehicle division said “We are targeting to operationalize the Ford plant in 12 to 18 months”

The president of the automaker’s passenger car division also stated that the company’s present production capability is somewhere in the range of 50,000 vehicles per month.

Tata Motors completed the purchase of Ford India’s Sanand manufacturing facility earlier this month through a subsidiary.

Ford India Pvt Ltd.’s (FIPL) Sanand facility in Gujarat would be purchased by the company’s unit Tata Passenger Electric Mobility Ltd (TPEML) in August 2022 for about 726 crores.

Tata Motors had previously stated that the acquisition is timely and advantageous for all parties involved as its manufacturing capacity is approaching saturation. The Sanand facility has a 3-lakh unit annual production capability that may be increased to 4.2 lakh units annually.

TPEML is in the process of making the necessary expenditures to modify the plant to accommodate the current and next vehicle platforms of the Mumbai-based manufacturer. The building is close to Tata Motors’ current Sanand manufacturing location. Chandra had stated during an analyst call that the company can also debottleneck capacities by 10-15% at its two existing facilities in Pune and Sanand. making the necessary expenditures to modify the plant to accommodate the Mumbai-based manufacturer’s current and next vehicle platforms.

After the BS VI Phase 2 emission standards are implemented, the company will need to closely examine the demand situation because vehicle prices are expected to rise as a result of the new regulatory mechanism.