The JSW Group recently finalized an agreement to buy the Ford India factory for around US$ 100 million.

According to a media report, Ford has cancelled its plans to sell its Tamil Nadu plant, after finalizing a deal with the JSW Group. The move has also raised speculations about the brand’s return to the Indian market.

The Sajjan Jindal-led JSW Group recently finalized an agreement to buy the Ford India factory for around US$ 100 million. The company has purchased a 35% stake in a joint venture with China-based SAIC. As part of the JV, the two companies plan to augment local sourcing, improve charging infrastructure and expand production capacity.

Ford had been looking for buyers for its manufacturing unit at Maraimalai Nagar ever since it announced its exit from the Indian market. The plant has been shut since July 2022. When asked about the recent developments, a Ford India spokesperson said that the company continues to explore alternatives for its manufacturing facility in Chennai.

Ford India’s Chennai plant is spread over 350 acres and has an annual production capacity of 1,50,000 cars. The factory also produces around 3,40,000 engines.

Some of the other brands who have expressed interest in purchasing the factory are Vietnam-based EV maker VinFast and Mahindra.

Source: ET Auto

Toyota is investing Rs 3,300 crore in the new plant that will have a production capacity of 1 lakh units per annum.

Toyota has announced that it will set up a new manufacturing facility in India. The carmaker has signed a Memorandum of Understanding (MoU) with the government of Karnataka to set up its third plant.

Toyota’s new manufacturing unit will be situated close to its existing facilities at Bidadi near Bangalore. The company is investing Rs 3,300 crore in the new plant that will have a production capacity of 1 lakh units per annum. It is also expected to provide employment to about 2,000 individuals. 

Toyota’s third plant will be operational by 2026. It will boost the brand’s total production capacity by 30% to 4 lakh units per annum.

Toyota will build its upcoming 3-row SUV at the new assembly line. The new model is said to be based on the TNGA-C platform and will be a modified version of the Corolla Cross sold in overseas markets.  

Source: Autocar India

Jindal could initially get over 30% stake in the company with MG Motor continuing to control a majority stake

According to a media report, Sajjan Jindal, Chairman and Managing Director of the JSW Group, is all set to acquire Ford’s Chennai plant.

Reports suggest that the steel magnate is setting up a new company by buying a sizeable stake in MG Motor India. He is also said to be in talks with China-based Leapmotor to license their EV technology.

It has been reported that Jindal is looking to acquire 45-48% of MG Motor India after the wholly-owned subsidiary of China-based SAIC Motor decided to dilute its stake. The Hero Group, Reliance and Premji Invest were also said to be in the race to acquire the automaker.

As per the latest reports, Jindal could initially get over 30% stake in the company with MG Motor continuing to control a majority stake along with local financial institutions and employees. There are plans for an IPO that would give the Jindal entity a controlling stake.

Source: ET Auto

Maruti Suzuki to acquire 100% of equity shares of Suzuki Motor Gujarat for Rs 12,841.1 crore.

The Suzuki Motor Corporation (SMC) is increasing its stake in Maruti Suzuki from 56.48% to 58.19%. Maruti has also approved the deal to acquire a 100% stake in Suzuki Motor Gujarat (SMG).

According to a statement, the Board of Maruti Suzuki India has approved the issuance of 1.23 crore equity shares of face value of Rs 5 each to Suzuki Motor Corporation at a price of Rs 10,420.85 per share.

The board of Maruti Suzuki India has executed the share purchase and subscription agreement to acquire 100% of equity shares of SMG owned by Suzuki Motor Corporation for Rs 12,841.1 crore.

In August, the company’s board had approved the issuance of shares to SMC on a preferential basis for the acquisition of a 100% stake in SMG. With this acquisition, Maruti Suzuki aims to reduce complexity and consolidate all manufacturing-related activities under one entity.

Source: HT Auto

Kia also plans to set up exclusive showrooms for its EV line-up in India.

Kia has announced that it will be setting up an EV production facility in India. This new factory will not only serve the domestic market but also be a production hub for emerging markets across the world.

The announcement was made during the inaugural 'Kia EV Day'. "Strategically designed EV models tailored for emerging markets will be produced in India," the carmaker said.

A total of eight production facilities have been planned, with Korea serving as the central hub. Small and medium-sized EVs will be manufactured in Europe, while China will handle mid to large-sized EVs.

Kia plans to develop a wide range of EVs priced between US$ 30,000 to US$ 80,000. These will include smaller EVs like the EV5, EV4 and EV3. However, in emerging markets like India, the carmaker will initially focus on the EV6 and EV9.

Kia also plans to set up exclusive showrooms for its EV line-up in India. 

Together, both facilities will have a combined annual production capacity of 4,20,000 units.

Ather Energy is planning to set up a new manufacturing facility to expand its production capacity, as it prepares to enter the global electric 2-wheeler market.

According to Ravneet Phokela, Chief Business Officer of Ather Energy, the company is in talks with various state governments to finalize the factory’s location. The new facility will be set up outside of Tamil Nadu, where it already has a manufacturing unit. Together, both facilities will have a combined annual production capacity of 4,20,000 units.

Ather Energy has identified markets in Southeast Asia, Latin America and Europe for its future expansion. It will also mark the brand’s foray into the international market.

Last month, Ather Energy secured an investment of Rs 900 crore from Hero MotoCorp and Singapore’s GIC. According to CEO and co-founder Tarun Mehta, the funds will be used to expand the company’s portfolio and its footprint.

Source: ET Auto

Toyota's new SUV could be launched in the Indian market in early 2026.

According to a media report, Toyota is developing a new SUV for the Indian market. The carmaker is also said to be planning to set up a third manufacturing plant in the country.

The report states that the new SUV, details of which, are still unknown, will be launched in the Indian market in early 2026. It would be the anchor product for the upcoming factory. Toyota is looking at an initial capacity of 80,000-1,20,000 units per year, which could be expanded to 2,00,000 units.

Toyota has seen an increase in its domestic sales since it joined hands with Suzuki Motor. The Glanza and Urban Cruiser Hyryder account for 40% of Toyota's India sales.

It is said that about two-thirds of Toyota's current production capacity is used by Maruti Suzuki to build vehicles for both brands. The new plant would expand the carmaker's existing manufacturing capacity of 4,00,000 units by 30%.

There has been no official word regarding the latest reports from Toyota yet.

Source: ET Auto

Foxconn is the largest contract manufacturer of Apple devices in the world and is currently the top iPhone producer in India.

Last month, Taiwan-based electronics giant Foxconn had revealed that it was working on a small electric car for emerging markets. The company also hinted that it was likely to be manufactured in India.

According to a recent media report, Foxconn is exploring opportunities to manufacture EVs in the Indian state of Tamil Nadu.

Chairman and CEO Young Liu recently met Prime Minister Narendra Modi in Gujarat at Semicon India 2023. Liu said, "Foxconn continues to expand its presence in India in response to customer needs." He went on to add that India would become a new manufacturing centre of the world.

Foxconn has been operating in India since 2005. It is the largest contract manufacturer of Apple devices in the world and is currently the top iPhone producer in India.

Source: ET Auto

Hyundai India aims to achieve a production capacity of 1 million units per annum.

Hyundai has announced the acquisition of General Motors' Talegaon plant. The Asset Purchase Agreement (APA) has been signed by the two parties. The completion of the acquisition and assignment is subject to regulatory approvals.

GM's Talegaon plant currently has an annual production capacity of 1,30,000 units. Reports suggest that Hyundai plans to expand it by investing more than Rs 5,000 crore over the coming decade.

Together with its Sriperumbudur unit near Chennai, Hyundai India aims to achieve a production capacity of 1 million units per annum. According to the company, manufacturing operations at the newly acquired facility are planned to commence in 2025.

In 2017, General Motors terminated its operations in India. Since then, the company has been on the lookout for a suitable buyer. In 2019, GM entered into negotiations with China's Great Wall Motors. However, these failed to reach fruition due to regulatory hurdles.

In addition to Bajaj products, the factory will also produce KTM motorcycles.

Bajaj Auto has announced that it plans to set up its first overseas manufacturing facility in Brazil, through its wholly-owned subsidiary Bajaj Do Brazil.

Bajaj Auto's new manufacturing plant is expected to be installed at the Manaus Special Economic Zone in northern Brazil. It will have an annual production capacity of 2,40,000 units. Production is expected to commence in the next 12 months.

In addition to Bajaj products, the factory will also produce KTM motorcycles. Bajaj also has a tie-up with UK-based Triumph Motorcycles, which already has a manufacturing presence in Brazil.

Bajaj is the largest exporter of motorcycles and 3-wheelers in India. The company has a presence in over 90 countries. The distribution model adopted by Bajaj has served it well in these markets, but the company believes that Brazil is an exception due to its size, complexity and unpredictability.

Source: ET Auto