Homegrown auto major Tata Motors announced that its subsidiary had signed a Memorandum of Understanding (MoU) with the Gujarat government for the possible acquisition of Ford India’s Sanand plant.
“Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL), have today signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility,” the Tata Group firm informed in an exchange filing.
Subject to the signing of definitive agreements and receipt of appropriate permits, the potential acquisition will include land and buildings, a vehicle manufacturing plant, machinery and equipment, and the transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations. TPEML will lease back the land and buildings of the Powertrain unit to FIPL, which will run the Powertrain manufacturing facilities.
The Ford India vehicle manufacturing site at Sanand is a state-of-the-art site. TPEML would invest in new machinery and equipment to commission and prepare the unit for vehicle production.
It expects to build an installed capacity of 300,000 units per year with the proposed investments, scalable to more than 400,000 units in a few months. The MOU will be followed by signing TPEML and FIPL’s definitive transaction agreements in the coming weeks.
“This MOU for a potential acquisition of this unit, is a win-win for all stakeholders and helps Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity. This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition,” the company added.
