Tata Motors' subsidiary Tata Passenger Electric Mobility on Monday signed an agreement with Ford India and the Gujarat government for takeover of Ford's passenger vehicle manufacturing facility, which is located adjacent to its unit at Sanand.
The tripartite MoU covered land and buildings; vehicle manufacturing plant; machinery and equipment; and besides transfer of all eligible employees of Sanand-based Ford India's vehicle manufacturing unit, subject to the signing of definitive agreements and receipt of relevant approvals, revealed the automaker in a regulatory filing.
The Ford India vehicle manufacturing site at Sanand is a state-of-the-art site. After the takeover, Tata Passenger Electric Mobility would invest into new machinery and equipment which is necessary to commission the unit and make it ready to produce Tata vehicles.
The proposed investment plan envisages to equip the unit with an installed capacity of 300,000 units per annum and scalable to more than 400,000 units in a few months time, the filing said.
"Tata Motors has had a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities. Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years," said Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
The takeover will support expansion of capacity, thus securing potential future growth for the company's position in the passenger and electric vehicles space, Chandra said. The filing stated that the definitive transaction agreements between the two will be signed over the next few weeks.