Tata Motors to acquire Ford India’s Sanand Plant

On May 30, 2022, Tata Motors and the Gujarat government signed a Memorandum of Understanding (MoU) for the potential acquisition of Ford India's Sanand facility.

Tata Motors to acquire Ford India’s Sanand Plant

On May 30 2022, Tata Motors and the Gujarat government have signed a Memorandum of Understanding (MoU) for the potential acquisition of Ford India's Sanand facility. Subject to the signing of definitive agreements and receipt of appropriate permits, the possible acquisition will include land and buildings, a vehicle manufacturing plant, machinery and equipment, and the transfer of all qualified personnel of FIPL Sanand's vehicle manufacturing business. Tata Passenger Electric Mobility Limited (TPEML) will lease back the land and buildings of the Powertrain unit to Ford India Private Limited (FIPL), which will run the Powertrain production facility.

Sanand is home to Ford India's cutting-edge automotive manufacturing facilities. TPEML plans to invest in new equipment and machinery to commission and prepare the plant for car manufacturing.

It expects to build an installed capacity of 300,000 units per year with the proposed investments, which would be scalable to more than 400,000 units in a few months. The MOU will be followed by the signing of TPEML and FIPL's definitive transaction agreements in the coming weeks.

This MoU strengthens its commitment to the state by expanding job and business prospects. Rising customer demand for Tata Motors' passenger and electric vehicles has resulted in the company's multi-fold expansion in recent years. This proposed deal will enable capacity expansion, ensuring future growth and the ability to improve its position in the passenger and electric vehicle markets.