Tata Motors takes over Ford’s manufacturing facility in Gujarat. about


Tata Passenger Electric Mobility, a subsidiary of automaker Tata Motors, signed a tripartite Memorandum of Understanding (MoU) on Monday with Ford India and the Government of Gujarat for the acquisition of Ford’s passenger car manufacturing plant in Sanand.

The MoU included land and buildings; car factory; machinery and equipment; and in addition to transferring all eligible employees of Ford India’s vehicle manufacturing operations, Sanand, subject to the signing of definitive agreements and receipt of relevant approvals, the automaker said in a regulatory filing.

Ford India’s car plant in Sanand is a state-of-the-art site. The Tata Motors branch would invest in new machinery and equipment needed to commission the unit and prepare it for production of its vehicles.

With the proposed investments, it would achieve an installed capacity of 300,000 units per year, which would be scalable to more than 400,000 units, the filing said, adding that it would take a few months.

Notably, the unit is adjacent to Tata Motors Passenger Vehicles’ existing manufacturing facility in Sanand, which it says will help ensure a smooth transition.

“Tata Motors has had a strong presence in Gujarat for over a decade with its own manufacturing facility in Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities. Increasing customer preference for passenger and electric vehicles made by Tata Motors has led to multiple growth for the company in recent years,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

This potential transaction will support capacity expansion, securing future growth and opportunities to further strengthen the company’s position in passenger and electric vehicles, Chandra said.

The MoU will be followed by the signing of final transaction agreements between the branch of Tata Motors and Ford India in the coming weeks, the filing said.

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