As per the MoU, Ford India will operate its powertrain manufacturing facilities by leasing the land and buildings of the powertrain unit from TPEML.
As per the MoU, Ford India will operate its powertrain manufacturing facilities by leasing the land and buildings of the powertrain unit from TPEML.
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Limited, and Ford India Private Limited (FIPL) have entered into a Memorandum of Understanding (MoU) with the Government of Gujarat (GOG) for the possible acquisition of FIPL’s Sanand. Transfer of all eligible employees of vehicle manufacturing facility and vehicle manufacturing operations of FIPL Sanand including land and building, vehicle manufacturing plant, machinery and equipment, subject to the signing of definitive agreements and receipt of relevant approvals.
As per the MoU, FIPL will operate its powertrain manufacturing facilities by leasing the land and buildings of the powertrain unit to TPEML.
TPEML will invest in new machinery and equipment that is required for commissioning and preparing the unit for production of its vehicles.
With the proposed investment, it will set up an installed capacity of 300,000 units per year, which will be increased to over 400,000 units.
“We anticipate that it will take a few months. This MoU for the possible acquisition of this unit, is a win-win for all stakeholders and helps Tata Motors accelerate the growth of its PV/EV manufacturing capacity. The unit is adjacent to the existing Tata Motors Passenger Vehicles Limited manufacturing facility at Sanand, which should help in a smooth transition,” Tata Motors said in a statement.
‘Beneficial for all state holders’
Rajeev Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat said, “The objective of this MoU is to catalyze a win-win for all stakeholders and ensure a smooth transition. This effort reinforces its resolve to further strengthen Gujarat’s image as a progressive, investment-friendly state and as a major automotive hub in the country. ,
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited said, “Tata Motors with its own manufacturing facility at Sanand has a strong presence in Gujarat for over a decade. This MoU further strengthens our commitment to the state by creating more employment and business opportunities.”
“The increasing customer preference for passenger and electric vehicles made by Tata Motors has led to a manifold growth for the company over the years. This will support the expansion of potential transaction capacity, thus further enhancing our position for future growth. Will seize the opportunity to strengthen in the field of passenger and electric vehicles.”
This MoU will be followed by the signing of definitive transaction agreements between TPEML and FIPL in the next few weeks.