Tata Passenger Electric Mobility Limited, a subsidiary of Tata Motors, and Ford India Private Limited (FIPL) have signed today an MOU with the Gujarat Government. The MOU pertains to the potential acquisition of the Ford’s Sanand vehicle manufacturing facility.
Along with the manufacturing facility, the acquisition will also include –
However, this is subject to the signing of definitive agreements and receipt of relevant approvals. The signing of the definitive transaction agreements will take place over the next few weeks.
Ford will continue to operate its Powertrain manufacturing facilities. The company will do so by leasing back the land and buildings of the unit from Tata.
The Ford India manufacturing facility is a state-of-the-art site. Tata will invest in all the necessary equipment and machinery to make it ready to produce its vehicles. Tata will have an annual capacity of 300,000 units with the planned investments. Furthermore, it will also be scalable to 400,000 units. Tata anticipates the process to complete in a few months. According to Tata, the acquisition is a win-win for all the stakeholders. In addition to this, it also enables Tata to accelerate its PV/EV manufacturing capacity. Ford’s unit is adjacent to Tata’s existing manufacturing facility at Sanand. Hence, it should help in a smooth transition.
Tata’s passenger and electric vehicles keep delivering market-beating growth. This is thanks to its new ‘New Forever’ range of products that have come up over the last two years. With proactive investments in EVs and a strong pipeline of future-ready products, expect the growth momentum to continue. The acquisition will also support the expansion of capacity. Thus, securing future growth and opportunities.