Tata Passenger Electric Mobility signs definitive agreement for the acquisition of Ford India’s Sanand Plant For Rs 725.7 Cr, the acquisition would add 3 Lk units to Tata Motors capacity, scalable to 4.2 lakh units
Tata Motors signs Definitive Agreement for the acquisition of Ford India’s Sanand plant
Tata Passenger Electric Mobility Limited (TPEML) and Ford India Private Limited (FIPL), subsidiaries of Tata Motors Ltd, today signed a Unit Transfer Agreement (UTA) to acquire FIPL’s manufacturing facility in Sanand, Gujarat.
(i) Entire land and buildings.
(ii) Vehicle manufacturing plants and machinery therein.
(iii) transfer all licensed employees of his FIPL’s car manufacturing plant in Sanand for a total of 725.7 Cr (Rs.
FIPL will continue to operate the powertrain manufacturing facility by leasing back the powertrain manufacturing facility land and buildings from TPEML on mutually agreed terms. TPEML has agreed to provide employment to eligible employees at FIPL’s powertrain manufacturing facility should FIPL cease operations.
Completion of the transaction is subject to receipt of appropriate governmental approvals and the satisfaction of precedent for customary conditions. Gujarat Government, TPEML, and FIPL signed a tripartite memorandum of understanding on May 30, 2022, to support all approvals related to the above transaction.
Tata Motors Passenger Vehicles has outperformed the market in recent years and has strong plans to continue this momentum with a strong pipeline of future-ready ‘New Forever’ products and aggressive investment in electric vehicles is standing This acquisition is timely and a win-win for all involved as our manufacturing capacity is nearing saturation. This will unlock a state-of-the-art capacity of 300,000 units per year, expandable to 420,000 units per year.
Read More: Mahindra XUV 700 Crashed in Tamil Nadu
TPEML will make the necessary investments to reconfigure the plant and adapt it to Tata Motors’ existing and future vehicle platforms. The unit is adjacent to Tata Motors Passenger Vehicles Limited’s existing manufacturing facility in Sanand and should help ensure a smooth transition.