Tata Motors arm to acquire Ford India’s Sanand plant in Gujarat, signs MoU
On Monday a tripartite Memorandum of Understanding (MoU) has been signed between Automobile maker Tata Motors subsidiary Tata Passenger Electric Mobility, Ford India, and the Government of Gujarat for the takeover of Ford’s passenger vehicle manufacturing facility at Sanand.
The MoU will be followed by the signing of the definitive transaction agreements between Tata Motors’ arm and Ford India over the next few weeks, the filing added.
The Tata Motors arm would invest in new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles
The MoU included land and buildings; vehicle manufacturing plant; machinery and equipment; and besides transfer of all eligible employees of Ford India’s Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals, the automaker said in a regulatory filing.
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 filing said, adding it would take a few months.
“Tata Motors has had 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,” said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
This potential transaction will support the expansion of capacity, thus securing future growth and the opportunity to further strengthen the company’s position in the passenger and electric vehicles space, Chandra said.
Notably, the unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles at Sanand, which it believes will help in a smooth transition.
[With Inputs from IANS]
PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views
For all the latest updates, download PGurus App.
- Like Amethi, Congress’ ‘shehzada’ will lose Wayanad seat too: PM Modi’s dig at Rahul Gandhi - April 20, 2024
- Karnataka HM apologizes to Neha’s parents while the killer Fayaz’s mother expresses her desire to ‘punish her son’ - April 20, 2024
- US: Indian student’s death possibly linked to Blue Whale suicide game - April 20, 2024
