Tata Passenger Electric Mobility acquires Ford India’s Sanand car manufacturing facility
Tata Passenger Electric Mobility Limited (TPEML) - a subsidiary of Tata Motors - and Ford India Private Limited (FIPL) have signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL's manufacturing plant situated at Sanand, Gujarat.
The facility, with all assets and eligible employees, has been acquired for a consideration of ₹ 725.7 Crores ($ 91.5 million). It boasts a production capacity of 300,000 units per annum, which is scalable to 420,000 units, hinting at Tata Motors's aggressive EV production plans in store for the immediate future.
Tata Motors said that its current manufacturing capacity is nearing saturation, and that the acquisition of Ford's plant is timely effort to sustain its growth momentum, with its robust pipeline of future ready 'New Forever' products and proactive investments in electric vehicles.
TPEML would make the necessary investments to reconfigure the plant to adapt to Tata Motors' existing and future vehicle platforms. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand, which should help in a smooth transition, the company added.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, "The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment".
He further added that the new facility will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat".
"Today's announcement marks an important step forward in Ford's ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring," said Steve Armstrong, Transformation Officer of Ford Motor Company.