Tata Motors to buy Ford India Sanand plant

30 May 2022 , 11:01 AM

Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors signed Memorandum of Understanding with the Government of Gujarat for potential acquisition of Ford Indias Sanad vehicle manufacturing facility. The acquisition includes land & buildings, vehicle manufacturing plant, machinery and equipment and transfer of all eligible employees, subject to the signing of definitive agreements and receipt of relevant approvals. Ford India will continue to operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from TPEML. TPEML would invest into new machinery and equipment 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 300,000 units per annum, which would be scalable to more than 400,000 units. The MoU will be followed by signing of the definitive transaction agreements between TPEML and Ford India over the next few weeks. Speaking on the occasion, Shailesh Chandra, managing director of Tata Motors Passenger Vehicles 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 expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.? Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses. Tata Motors reported a consolidated net loss of Rs 1,032.84 crore in Q4 FY22 as against a net loss of Rs 7,605.40 crore in Q4 FY21. Revenue from operations declined 11.5% YoY to Rs 78,439 crore during the quarter. Powered by Capital Market – Live News