In Sanand, Gujarat, Ford India’s manufacturing facility was acquired by Tata Motors through the execution of a Unit Transfer Agreement (UTA) for more than Rs 725 crore (exclusive of taxes). The electric arm of Tata Motors, Tata Passenger Electric Mobility (TPEML), and Ford India Private Limited (FIPL) have signed a contract to buy out Ford’s India facility as the American automaker exits the Indian market after declaring the immediate seizure of manufacturing in September 2022.
Tata has purchased Ford’s plant in Gujarat for Rs 725 crore in order to manufacture electric vehicles:
Tata Motors has shown interest in the Ford India-run Sanand facility as a result of the company’s expanding ambitions and strong demand, which have made it necessary to increase its production capacity. Once TPEML decides to begin manufacturing at the plant, it is anticipated that it will make the required reconfigurations and modifications to better meet its production requirements.
The UTA has been signed to purchase the entire plot of land, all buildings, the vehicle manufacturing facility, and all of the interior machinery and equipment. In typical Tata fashion, TPEML has chosen to retain qualified FIPL workers from the facility’s vehicle manufacturing operations.
Ford India will still run its plant for making powertrains, and it has a lease agreement with TPEML that permits the use and operation of that particular plant. TPEML has agreed to hire staff from FPIL’s powertrain manufacturing division in the event that the American firm decides to shut down operations.
Once all required clearances and approvals are obtained and other customary conditional proceedings are finished, the transaction will be officially closed. To provide the necessary support for the aforementioned transition, a tripartite MoU was already signed on May 30, 2022, between the Gujarat Government, TPEML, and FIPL.
With this new acquisition, Tata Motors will have access to a cutting-edge production facility with a 3,00,000-unit capacity that can produce up to 4,20,000 units annually. A smoother transition can be anticipated because TPEML operates from a facility close to the recently acquired FIPL facility.
