Tata Passenger Electric Mobility Limited (TPEML) and Ford India Private Limited (FIPL) have signed a Memorandum of Understanding with the Government of Gujarat for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility including (i) Land & Buildings (ii) Vehicle Manufacturing Plant, Machinery and Equipment and (iii) transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals. FIPL will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from TPEML.
Tata Motor’s Passenger and Electric Vehicles have delivered market-beating growth with its ‘New Forever’ range of products over the last two years. This growth will require augmenting PV/EV manufacturing capacity in the coming years. TPEML would invest into new machinery and equipment and establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. This MoU is a win for all stakeholders and helps Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity. It will be followed by signing of the definitive transaction agreements between TPEML and FIPL over the next few weeks.
The Managing Director of Tata Motors Passenger Vehicles Limited and TPEML Mr. Shailesh Chandra said, “This potential transaction will secure future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”
