New Delhi: Tata Passenger Electric Mobility Ltd, a subsidiary of Tata Motors, and Ford India on Monday inked an agreement with Gujarat government to acquire Ford India’s Sanand vehicle manufacturing unit, the PTI reported.
The potential acquisition of Ford India’s Sanand vehicle manufacturing unit includes its land assets, buildings, vehicle manufacturing plant, machinery, and other equipment, Tata Motors said in a regulatory filing.
The MoU also includes the transfer of all eligible employees of Ford India Sanand’s manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals, it added.
Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility MD Shailesh Chandra 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,” while adding that rising customer preference for passenger and electric vehicles made by Tata Motors has also led to a multifold growth for the company over the past few years.
“This potential transaction will support the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space,” Chandra said.
Tata Motors said that the MoU will be followed by the signing of the definitive transaction agreements between Tata Passenger Electric Mobility and Ford India over the next few weeks.
According to the report, Tata Passenger Electric Mobility is also planning to invest in new machinery and equipment, which is necessary to commission and make the unit ready to produce its vehicles. The proposed investments would set up an installed capacity of 3 lakh units per annum, which would be scalable to more than 4 lakh units.
“We anticipate this to take a few months. 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 Mumbai-based auto major said.
Meanwhile, Gujarat’s Additional Chief Secretary Rajiv Kumar Gupta said the MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition.