Nexon Maker to manufacture 2 Lakh EVs at former Ford factory

Production of Tata electric vehicles
Former Ford factory could make 2.4 lakh cars

To start production of electric vehicles in Sanand, Tata will invest additional Rs. 2000 crores in installation

Tata aims to make Ford’s plant in Sanand, Gujarat, a production hub for electric vehicle (EV) models once it acquires the plant. By 2026, the Altroz ​​maker wants to be able to manufacture 2 lakh electric vehicles a year at the plant.

The manufacturer Nexon EV, which plans to invest additional Rs. 2000 crores in the manufacturing site, will not lay off any of the Ford India employees who were working in the plant.

Tata currently manufactures 10,000 electric vehicles at its former Nano factory in the same city, which is capable of producing a maximum of 1.50 lakh units per year. The plant is currently rolling out the Tiago, Tigor and Tigor EV models.

Tata EV production side
The engine plant is still operational and is under the control of Ford Motors

Tata’s biggest advantage with the newly acquired factory is its existing infrastructure. Ford has already invested Rs. 4,500 crore over the past decade in the plant. It has a manufacturing capacity of 2.40 lakh cars per year.

Earlier this year, Tata Motors and Ford India submitted a proposal to transfer ownership of Ford’s passenger vehicle manufacturing plant to Tata Motors for an undisclosed sum. The high-level committee recently approved the proposal.

The Gujarat government has also reportedly given its approval to Tata’s request to pay a reduced Rs. 66 crores as the transfer rate (about 20% of the minimum land cost) while also receiving all remaining eligible incentives that have been promised to Ford until 2030.

Source