Tata Motors in talks with Ford to take over its two India plants

Over two months after Ford announced its plan to exit India, home-grown automobile major Tata Motors has touched base with the US-based auto giant for talks on the sale of its two plants in Tamil Nadu and Gujarat. 

Highly placed sources in the know of the developments told DH that a high-level team from Tata Motors has visited the sprawling facilities owned by Ford India in Maraimalai Nagar on the outskirts of Chennai and in Sanand in Gujarat, as part of the negotiations between the two firms. 

The talks between the two companies have gained pace in the past few weeks, especially after Tata Group Chairman N Chandrasekaran met Tamil Nadu Chief Minister M K Stalin at his residence in early October. A high-level delegation from the Guidance Bureau of Tamil Nadu also met with high- ranking officials from Tata Motors in Mumbai. 

The Tamil Nadu government is acting as an interlocutor between Ford India and Tata Motors as the former’s exit is likely to have an impact on those working in the factory and hundreds of Micro, Small, and Medium Enterprises (MSMEs). 

“The talks between the two companies are continuing. The state government is just facilitating the talks. Tata Motors is keen on taking over the Sanand plant due to its proximity to its own manufacturing unit. As far as the Maraimalai Nagar plant is concerned, the Tata Group is still exploring its options. But the state government is hopeful,” a source said. 

Another source told DH that “more clarity” is expected on the issue in the first week of December when another round of talks is likely to take place between the two companies. If Tata Motors’ succeeds in its efforts and takes over the Ford factory on the outskirts of Chennai, this will be the company’s first foray into south India to manufacture passenger cars. 

However, Ford India and Tata Motors were tightlipped on the issue. “We continue to explore possible alternatives for our manufacturing facilities but have nothing further to share related to the speculations,” a spokesperson for Ford India told DH in response to a query.

A spokesperson for Tata Motors said the company as a policy “does not comment on rumours and speculations.” Ford India had on September 9 announced its plans to exit India operations by closing its plants. However, the company will continue to cater to the Indian market through imported cars.

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