Tata Motors to Acquire Ford India’s Sanand Plant

Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, has signed an agreement to acquire the Ford India Private Limited (FIPL) manufacturing plant in Sanand, Gujarat, a major industrial hub in western India.

The acquisition terms include the Sanand site’s entire land and buildings, the vehicle manufacturing plant with machinery and equipment, and transfer of all eligible FIPL employees at the Sanand manufacturing operations, which reports a capacity of 300,000 units per year, scalable to 420,000 units annually.

FIPL will continue to operate its powertrain manufacturing facility, leasing back the land and plant buildings from TPEML. In addition, TPEML has agreed to offer employment to the eligible employees of the powertrain manufacturing plant should FIPL cease plant operations.

TPEML plans to reconfigure the plant to adapt to Tata Motors’ existing and future vehicle platforms. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand.

According to Shailesh Chandra, managing director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, the acquisition “will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat (self-reliant India).”

“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,” said Steve Armstrong, Ford Motor Company transformation officer.