Mumbai, May 30 (UNI): The Tata Motors subsidiary, Tata Passenger Electric Mobility Limited (TPEML), and Ford India on Monday signed a Memorandum of Understanding (MoU) with Gujarat government for acquiring the American automaker’s manufacturing facility in Sanand.
Tata Motors and Ford India will sign the definitive transaction agreements over the next few weeks.
As per the pact, Ford India will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from TPEML.
The US-based auto major Ford had last year announced to shut its factories in India citing unviable business conditions and high accumulated losses.
Following the acquisition of Ford’s manufacturing unit, Tata group firm would invest into new machinery and equipment which would be necessary to commission and make the unit ready to produce its vehicles.
“With the proposed investments, it would establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. We anticipate this to take a few months,” Tata Motors said in a statement.
“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,” it further said.
Speaking on the occasion, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited said that the proposed deal would support expansion of capacity, thus securing future growth and opportunity to further strengthen the company’s position in the passenger and electric vehicles space.
