The Gujarat government and Tata Motors have signed a Memorandum of Understanding (MOU) for the potential acquisition of Ford India’s Sanand manufacturing facility in Gujarat.
“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,” Tata Motors said in a press release.
The acquisition will include land, buildings, vehicle manufacturing plant, machinery, equipment and transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals.
Ford India will operate its powertrain manufacturing facilities by leasing the Tata Motors powertrain unit’s land and buildings.
Tata Passenger Electric Mobility will spend money on new machinery and equipment to get the plant ready for production.
The plant will have an installed capacity of three lakh units per year, which can be scaled up to over four lakh units with the proposed investments.
The Ford’s Sanand plant is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd , which should further help in a smooth transition, as per the company.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “Tata Motors has a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the State by creating more employment and business opportunities.”
“Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space,” Chandra added.
Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said, “This MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition. This effort reinforces Gujarat’s image as a progressive, investment-friendly State and its resolve to further strengthen the State as a leading automotive hub in the country.”