Tata Passenger Electric Mobility (TPEML) and Ford India (FIPL), have signed a Memorandum of Understanding (MoU) with the Government of Gujarat (GoG) for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility. FIPL will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from TPEML.
TPEML would invest in new machinery and equipment at Sanand, which is necessary to commission and make the unit ready to produce its vehicles. With the proposed investments, it would establish an installed capacity of 3 lakh units per annum, which would be scalable to more than 4 lakh units. This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles at Sanand. The MOU is expected to be followed by the signing of the definitive transaction agreements between TPEML and FIPL over the next few weeks.
Speaking on the occasion, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility, said, “Tata Motors has a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities. Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”
