Tata Motors to acquire Ford India’s vehicle manufacturing plant in Gujarat
Tata Motors said that its subsidiary Tata Passenger Electric Mobility Limited (TPEML) has agreed to acquire Ford India Private Limited’s vehicle manufacturing plant in Gujarat for INR 725.7 crores ($91 million).
The Ford manufacturing plant is located in Sanand. The deal includes the associated land and buildings, vehicle manufacturing plant and the related machinery and equipment, as well as employees engaged in the operations.
Steve Armstrong — Ford Motor Company Transformation Officer said: “Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation.
“With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring.”
According to Tata Motors, Ford India will continue to run its powertrain manufacturing facility by leasing back the associated land and buildings from Tata Passenger Electric Mobility on mutually agreed terms.
Through the acquisition, Tata Passenger Electric Mobility expects to unlock a manufacturing capacity of 300,000 units per year, which can be scalable to 420,000 units per annum.
The Tata Motors subsidiary will make the required investments for reconfiguring the Sanand vehicle manufacturing plant to adapt to the group’s existing and future vehicle platforms.
The unit being acquired is located near the existing manufacturing facility of Tata Motors Passenger Vehicles, thereby leading to a seamless transition, said Tata Motors.
Shailesh Chandra — Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director said: “The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment.
“It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat.”
The closing of the deal will be subject to approvals from the relevant government authorities and meeting of preceding conditions.