This acquisition includes an additional yearly manufacturing capacity of three lakh units.
Tata Motors has announced that its subsidiary, Tata Passenger Electric Mobility Ltd (TPEML), will complete its acquisition of Ford India’s manufacturing plant in Sanand, Gujarat, on January 10, 2023.
- All eligible employees will be transferred to TPEML
- Production capacity can be scaled up to 4,20,000 units per annum
- Upcoming Tata electric vehicles could be manufactured here
Back in August of this year, Tata Motors and Ford India Private Limited (FIPL) signed a Unit Transfer Agreement (UTA), allowing the former to acquire the latter’s manufacturing plant. A Memorandum of Understanding (MoU) was also signed with the Gujarat government in May this year.
As part of the agreement, Tata Motors will get entire land and buildings, vehicle manufacturing plant along with machinery and equipment situated therein, the automaker said. In addition, all the eligible employees at the Sanand unit of Ford India will be offered employment under TPEML on terms, conditions and benefits of service similar to those that were so far availed by them.
Tata Motors had previously said that Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from Tata Passenger Electric Mobility on mutually agreed terms.
According to Tata, its passenger and electric vehicles business has delivered market beating growth over the last few years and has strong plans to sustain this momentum, with its robust pipeline of future-ready “New Forever” products and proactive investments in electric vehicles.
Tata Motors also stated, “With existing capacities near saturation, this acquisition will unlock an additional state of-the-art manufacturing capacity of 3,00,000 units per annum which is scalable to 4,20,000 units per annum.”
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