Tata Motors seals acquisition deal for Ford's Sanand plant, will make EVs there
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL) on Sunday signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL’s manufacturing plant in Sanand, Gujarat. This plant will be used by Tata Motors for manufacturing and rolling out electric vehicles. Tata Motors claims that it aims to use the facility to roll out 300,000 EVs per annum which is scalable to 420,000 units per annum.
An official release by Tata Motors claims that the deal includes the acquisition of entire land and buildings, the vehicle manufacturing plant along with machinery and equipment, transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand. Tata Motors has stated that the deal has been finalized at ₹725.7 crore.
Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from Tata on mutually agreed terms, the statement further reads. Also, Tata Motors claims that it has agreed to offer employment to the eligible employees of FIPL’s powertrain manufacturing plant in the event of FIPL’s cessation of such operations.
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While the two companies have signed the finalizing deal, the closure of the transaction is subject to approvals from the government authorities and fulfilment of customary condition precedents.
Speaking about the agreement, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said that the agreement with FIPL signed 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. "It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future-ready Atmanirbhar Bharat," he further stated.