Will start building cars from our Sanand 2 plant by Q4 FY24: Tata Motors CFO

PB-Balaji, CFO, Tata Motors Limited

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26 Aug, 2025 12:21

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Nearly 10 months after completing the acquisition of Ford India’s Sanand facility, Tata Motors has announced that its own brand of cars will roll out of the facility in the fourth quarter of this financial year. Already having an annual capacity of 55,000 units across its existing facilities, the new facility will add another 30,000 units per annum to its output.

“Our second plant at Sanand is now operational and we can start making cars soon. So we believe in Q4 of this year, that is between January to March we'll get fully operational and will be starting to work full blast thereafter,” P.B. Balaji, CFO, Tata Motors, told reporters over a Q2 FY24 earnings call.

It is to be mentioned that Tata Motors already has a facility in Sanand, closer to erstwhile Ford India facility where it used to build Tata Nano.

Balaji revealed that from the Sanand 2 plant (which it likes to term as), 30,000 units per annum will be added which will lead to its total capacity aggregating to 85,000 units per annum. He also stated that the “first validated vehicle” has already rolled out of the new facility. “We have been able to make Nexon there, and are able to use that from beginning to end including IP systems, etc., and all worked very well,” added Balaji.

When asked about the kind of product lines that will be built at the plant, he maintained, “I'm not in a position to share the exact cars that will be made there at this point in time. We do have an internal plan once we are ready for that, we will be sharing with you.”

When quizzed about the “Validated product” that was rolled out he maintained that all the systems, processes, people, etc., are “working in tandem” to ensure there is a very “clear well-off process” that has been laid out.

“And we're able to adhere to that and get a quality product out.  It's like water testing of a pipeline has been done. So we are now able to get the factory to work the way we want it to. Don't forget, when we took over the Ford plant, the systems etc were proprietary Ford and were not available to us. So we have to ensure that the whole IT systems and everything has to be wired up to ours.”

When asked about the total capacity utilisation in the first phase, Balaji maintained that it depends on its total sales.

“We always build capacity ahead of what our demand plan is. And therefore at this point in time you're selling close to about 48,000 units.  85,000 units will be our total capacity when we start the plant. But then that gives us room for growth as we move from 50,000 to 60,000 and beyond. So, therefore, what exactly is the Sanad’2 s utilization  depends on what products we make there.”