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.