Tata Motors is looking to commence operations at the Gujarat-based manufacturing plant it acquired from Ford, over the next 12-18 months to scale up its production capacity, according to its head of the passenger vehicle business.
“We are targeting to operationalise the Ford plant in 12 to 18 months,” he noted when asked about the production capacity at the company’s disposal.
The automaker’s affiliate completed the acquisition of Ford India’s Sanand manufacturing facility earlier this month. Ford India Pvt Ltd’s (FIPL) Sanand facility in Gujarat would be acquired by the business’s unit Tata Passenger Electric Mobility Ltd (TPEML) for Rs 726 crore, the company stated in August of last year.
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.
Shailesh Chandra, managing director of Tata Motors’ passenger vehicle and electric vehicle division, stated during an analyst call that the business also has the ability to debottleneck capacities at its two current plants in Pune and Sanand by an extra 10-15%.
The company can presently produce about 50,000 units each month, according to Chandra. The automaker is pursuing other levers for margin enhancement while also taking structural steps to reduce material costs.
Regarding the sales prognosis, he stated that when compared to the third quarter, the fourth quarter should be good in terms of wholesales due to a lean inventory and increased supply.
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