Tata Motors, on behalf of its EV unit, has signed a Memorandum of Understanding (MoU) with the Gujarat govt for the potential acquisition of Ford India’s Sanand plant.
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, would invest in new machinery and equipment at the plant to make the unit ready to produce its vehicles.
The agreement includes a transfer of Ford India‘s land & buildings, vehicle manufacturing plant, machinery, and transfer of all eligible employees.
“It would establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. We anticipate this to take a few months,” a regulatory filling said.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility said, “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.”