Tata Motors signs MoU with Gujarat for acquisition of Ford India’s Sanand plant

Tata Motors has signed a Memorandum of Understanding (MoU) with the Gujarat govt for the potential acquisition of Ford India’s Sanand plant, it said in a regulatory filing on May 30.

The agreement includes a transfer of Ford India's land & buildings, vehicle manufacturing plant, machinery, and transfer of all eligible employees.

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.

"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," it said.

The automaker noted that the MoU is a win-win for all stakeholders and it will help "Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity."

This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition.

The new development comes after the plant had ceased operations in April.

Announcing the signing of this MoU, Dr Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said, “This 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.”

Speaking on the occasion, 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.”