Autoportal India

Tata Passenger Electric Mobility (TPEML), and Ford India (FIPL), have signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat. The agreement cost (exclusive of taxes) is valued at Rs 725.7 crore.

As a part of the agreement, TPEML will take over the entire land and buildings, the vehicle manufacturing plant along with machinery and equipment, as well as the transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand.

Meanwhile, Ford India will lease back the land and buildings under the powertrain manufacturing plant on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of this plant in the event of FIPL’s cessation of such operations.

The acquisition by Tata Motors will unlock a manufacturing capacity of 3 lakh units per annum which is scalable to 4.20 lakh units per annum. TPEML would make the necessary investments to reconfigure the plant to adapt to Tata Motors’ existing and future vehicle platforms. Additionally, the unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles at Sanand.

Commenting on the occasion, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility (TPEML), said, “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 towards building a future-ready Atmanirbhar Bharat”.