Tata Motors plans to begin operations at the Gujarat-based manufacturing plant it purchased from Ford within the next 12-18 months in order to increase production capacity.
“We expect the Ford factory to be operational in 12 to 18 months,” Tata Motors Managing Director For Passenger Vehicle and Electric Vehicles Shailesh Chandra stated when asked about the company’s manufacturing capabilities.
The automaker’s head of passenger car business also stated that the company’s current production capacity is around 50,000 units per month.
Tata Motors completed the acquisition of Ford India’s production unit in Sanand via a subsidiary earlier this month.
The business announced in August 2022 that its unit Tata Passenger Electric Mobility Ltd (TPEML) will acquire Ford India Pvt Ltd’s (FIPL) Sanand facility in Gujarat for around 726 crore.
‘Timely acquisition, a win-win for all stakeholders’
Tata Motors previously stated that, with its manufacturing capacity nearing saturation, the acquisition is both opportune and beneficial to all parties. The Sanand facility has a capacity of 3 lakh units per year, which can be increased to 4.2 lakh units per year.
TPEML is making the necessary expenditures to modify the factory to accommodate the Mumbai-based automaker’s current and future vehicle platforms. The unit is located next to Tata Motors’ existing manufacturing site in Sanand.
In an analyst call, Chandra stated that the company has the ability to debottleneck capacities at its two existing facilities in Pune and Sanand by an additional 10-15%.
In response to a question on the firm’s readiness to transfer its product line to conform to the second phase of BSVI emission norms, Chandra stated, “It is on track and ahead of the deadline.”
The tougher emission standards will go into effect on April 1, 2023. When asked about the business future, Chandra stated that after a lengthy period of supply-driven industry, the industry is now in a scenario where supply has entirely normalised.
“It is fulfilling demand for all standard models, with the exception of a few popular models that are still on the waiting list. The industry’s overall inquiry to retail time has grown. This indicates a lack of urgency among customers with enhanced supplies “He went on to say.
He also stated that the company will have to take a fresh look at the demand scenario following the adoption of the BS VI Phase 2 emission requirements, with car costs projected to rise due to the rollout of the new regulatory process.
“In terms of measures, we are willing to go for extremely focused demand generating initiatives, specifically in certain sectors and mega markets,” Chandra said.
In terms of margin, Chandra highlighted that the automaker is implementing fundamental material cost reduction efforts and is continuing to drive various levers of margin improvement.
In terms of sales forecast, he stated that with a reduced inventory and enhanced supply, the fourth quarter should be stronger in terms of wholesales than the third quarter.
“If we had to take a view by the end of this decade, the mix will be approximately 25-30% for CNG, 25-30% for the EV, and the balance would be gasoline, but with a high mix of flex-fuel since that is the way where things are moving,” Chandra said of the company’s predicted model mix by 2030.
In January, Tata Motors’ overall vehicle sales increased to 81,069 units.
Tata Motors reported a 6.4% increase in total vehicle sales in January, with 81,069 vehicles sold. The company’s total car sales in the previous year were 76,210 units.
Tata Motors stated in a statement yesterday that domestic vehicle sales were up 10% in the previous month to 79,681 units, compared to 72,485 units in 2022.
The business reported that its passenger vehicle domestic sales, including electric vehicles, were 48,289 units during the month under review, up 18% from 40,942 units in the same period last year.
However, overall commercial vehicle domestic sales fell 7% to 32,780 units in January 2023, down from 35,268 units the previous year.
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