Tata Motors’ EV subsidiary to buy Ford’s Sanand plant for ₹726 crore | Rare Techy

As part of the deal, Tata Motors will get the entire land and buildings, the vehicle manufacturing plant and the machinery and equipment located there, the Mumbai-based auto major said in a late-night filing to stock exchanges.

As part of the deal, all relevant employees of Ford India’s Sanand unit will be transferred to Tata Motors.

Tata Motors announced that Ford India will continue to operate the powertrain manufacturing plant by leasing back the land and buildings of the powertrain manufacturing plant from Tata Passenger Electric Mobility.

The EV subsidiary of Tata Motors has also agreed to provide employment to eligible workers at the powertrain manufacturing plant in case Ford India discontinues such operations, the statement added.

Completion of the transaction is conditional upon obtaining the relevant approvals from government authorities and meeting the precedents of the usual conditions. The Government of Gujarat, TPEML and FIPL have already entered into a tripartite MoU on 30 May 2022 to support all relevant assurances related to the above transaction.

The unit will be located adjacent to Tata Motors Passenger Vehicles Limited’s existing manufacturing facility in Sanand, which should help in a smooth transition, Tata Motors said.

This acquisition is timely and a win-win for all stakeholders. This will unlock a peak production capacity of 300,000 units per annum, scalable to 420,000 units per annum, the auto major added.

“Today’s agreement with FIPL is a win-win for all stakeholders and reflects Tata Motors’ strong commitment to further strengthen its market position in the passenger car segment and continue to strengthen its leadership position in the electric vehicle segment,” Tata Motors Passenger Vehicles MD said. Shailesh Chandra said.

Ford Motor Company chief transformation officer Steve Armstrong said the announcement is an important step forward in the company’s ongoing business restructuring in India, part of the Ford+ strategic transformation plan.

“With the job transfer of eligible vehicle manufacturing workers included in the contract, this milestone also highlights our best efforts to look after those affected by the restructuring,” he said.

The company announced in September last year that it would halt vehicle production at its two Indian plants as part of a restructuring.

Tata Motors said that both Tata Passenger Electric Mobility and Ford India will work together over the next few months to meet all the conditions and get the necessary regulatory approvals to close the deal.