Tata Passenger Electric Mobility (TPEM) might start manufacturing electric vehicles at Ford India's Sanand Plant as the former has signed a Memorandum of Understanding with the latter and the Government of Gujarat for potential acquisition of Ford's Sanand Plant.
Post-acquisition, Tata Motors plans to establish an installed capacity of 300,000 units per annum at the plant. Meanwhile, Ford India will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from Tata Motors.
This MoU includes acquisition of land & buildings, vehicle manufacturing plant, machinery and equipment at Ford's Sanand Plant by Tata Motors. All the eligible employees working at Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals, will also be transferred on the payroll of Tata Motors.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and TPEM said Tata Motors has 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. 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,” he said.
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, Chandra said.
Dr Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said the MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition. “This effort reinforces Gujarat’s image as a progressive, investment-friendly state and its resolve to further strengthen the state as a leading automotive hub in the country. It will boost the confidence of the international investment community, reinforce Gujarat’s position as the top investment destination in the country and further strengthen the Atmanirbhar vision of our Hon’ble Prime Minister,” Gupta said.