Tata Passenger Electric Mobility (TPEML) and Ford India (FIPL) have signed a Unit Transfer Agreement (UTA) to acquire the FIPL plant located in Sanand, Gujarat. The agreement cost (excluding taxes) is valued at Rs 725.7 crore.
As part of the agreement, TPEML will acquire all of the land and buildings, the vehicle manufacturing plant along with machinery and equipment, as well as the transfer of all qualified personnel from FIPL's vehicle manufacturing operations at Sanand.
Meanwhile, Ford India will lease the land and buildings of the powertrain manufacturing plant on mutually agreed terms. TPEML has agreed to offer employment opportunities to qualified employees of this plant in the event that FIPL ceases such operations.
The acquisition by Tata Motors will open up a manufacturing capacity of 3 lakh units per year which can be expanded to 4.20 lakh units per year. TPEML will make the necessary investments to reconfigure the plant to accommodate Tata Motors' current and future vehicle platforms. In addition, the unit is located next to Tata Motors' existing passenger car manufacturing facility in Sanand.
Commenting on the occasion, Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles and Tata Electric Passenger Transport (TPEML), said: “The agreement signed today with FIPL is a win-win for all stakeholders and reflects Tata Motors' strong aspiration to strengthen your market. in the passenger car segment and will continue to build on its leading position in the electric vehicle sector, accelerate the growth and development of the Indian automotive industry by taking a gradual step towards building the future-ready Atmanirbhar Bharat.”
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