Tata cars will be made at Ford’s plant: Tata will take over Ford Motors’ Gujarat plant, gets cabinet approval

Tata Motors has got permission to take over the passenger car manufacturing plant of Ford Motor located in Sanand, Gujarat. Earlier this week, the Gujarat cabinet approved a proposal to take the deal forward. Ford Motor Company announced its decision to leave India late last year. The company’s passenger vehicle manufacturing plant in Sanand had ceased operations in April this year.

According to media reports, the cabinet has also issued no objection certificate for this deal. MoU will also be signed between Tata Motors and Ford in front of Gujarat CM Bhupendra Patel on Monday. “The Gujarat cabinet’s approval is only a green signal… The companies are still in talks to work out the specifics related to the size of the deal, labor issues, financials and benefits involved in the takeover,” an official said.

Tata will also get Ford’s benefits

On May 30, representatives of both the companies will be present in the formal ceremony being done for signing the MoU. According to an official, the state government has agreed to pass on all benefits given to Ford to Tata Motors for the remaining time of the concession agreement. Earlier this month, Ford also dropped its plans to make EVs in India for the global market.

PLI scheme application back

Ford India was among 20 companies that were selected under the Government of India’s Production Linked Incentive Scheme announced in February 2022. But after a careful review, Ford withdrew its decision. Following the announcement of plant closure in September 2021, the American carmaker applied to join the Indian government’s PLI scheme.