Tata Passenger Electric Mobility Ltd (TPEML), a division of Tata Motors, said on Sunday that it had signed a Unit Transfer Agreement (UTA) to buy Ford India's production facility in Sanand, Gujarat, for Rs 725.7 crore.
By subleasing the land and buildings of the powertrain production plant from TPEML under mutually agreeable conditions, Ford India will keep running its powertrain manufacturing facility. Mumbai-based Tata Motors announced in a late-night announcement to the stock markets that as part of the arrangement, it will obtain the entire plot of land, buildings, a car production facility, and any apparatus and equipment. The 350-acre car assembly factory and 110-acre engine production facility are located in the Ford India manufacturing unit.
Through the acquisition, Tata Motors will have access to a manufacturing capacity of 3 lakh units annually, with room to grow to 4.20 lakh units annually.
Shailesh Chandra the managing director of Tata Motors Passenger Vehicles (TMPV) and Tata Passenger Electric Mobility (TPEML), stated during the event, "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".