News/ Industry/ Big News ! Tata Motors EV Arm Acquires Ford India’s Sanand Plant For Rs 725.7 Crores

Big News ! Tata Motors EV Arm Acquires Ford India’s Sanand Plant For Rs 725.7 Crores

India's third largest car manufacturer, Tata Motors, has clearly intended to be bullish on the future of electric vehicles in India. Recently, Tata Motors incorporated the EV subsidiary firm - Tata Passenger Electric Mobility Limited (TPEML), with an authorised share capital of around 700crore. And today, Tata Motors has confirmed that its EV subsidiary company-TPEML has signed a Unit Transfer Agreement (UTA) to acquire FIPL's manufacturing plant situated at Sanand, Gujarat, at Rs 725.7 crores (exclusive of taxes) Ford India built this facility in 2012, and after nine years of loss-making operations, Ford quit the Indian market in September 2021. However, Ford will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the Powertrain Manufacturing Plant from TPEML on mutually agreed terms. With this acquisition, TPEML has authority over entire land and buildings, Vehicle Manufacturing Plant along with machinery and equipment, as well as the transfer of all eligible employees of FIPL's vehicle manufacturing operations. This acquisition will strengthen Tata's production and EV manufacturing facility. TPEML will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum. Tata has recently shown its promising EV concept- Curvv and Avinya, which is expected to be launched by the year 2025. This manufacturing plant is not just a strategic investment in terms of EV manufacturing but also in terms of logistics and production, as this plant is a few kilometres away from Tata's existing Sanand plant. "The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment. It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat", says Mr. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited. Steve Armstrong, Transformation Officer of Ford Motor Company., further says, "today's announcement marks an important step forward in Ford's ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring. "The shared values of trust, ethics and putting people first were the driving force behind our agreement with Tata Motors. We are confident that both the state-of-the-art manufacturing set-up as well as the world-class talent will continue to prosper under the new leadership and help Tata Motors to scale new heights".

TopGear Magazine May 2024