More
    HomeEV NewsFord's Plant in Gujarat acquired by Tata Motors for making EVs

    Ford’s Plant in Gujarat acquired by Tata Motors for making EVs

    Tata Motors has signed a pact for acquiring Ford India’s plant in Sanand, Gujarat. The deal has been finalized between the subsidiary of Tata Motors – Tata Passenger Electric Mobility Ltd (TPEML) – which specializes in making electric vehicles and Ford India, which announced the exit from the country some time ago for a sum of Rs 725.7 crore.

    As part of the deal, Tata Motors will get entire land and buildings, a vehicle manufacturing plant along with machinery and equipment situated therein, the Mumbai-based auto major said in a statement. The deal also includes the transfer of all eligible employees, it added.

    However, Ford India will continue to operate its power train manufacturing facility by leasing back the land and buildings of the power train manufacturing plant from TPEML on mutually agreed terms, Tata Motors said in a statement. The government of Gujarat, TPEML, and FIPL have already executed a tripartite MoU on May 30, 2022, to support all relevant approvals for the above transaction.

    Ford India’s Sanand plant in Gujarat

    Tata Motors, India’s homegrown automaker said with its manufacturing capacity nearing saturation, the acquisition is timely and a win-win for all stakeholders. The Sanand plant has a manufacturing capacity of 3 lakh units per annum which is scalable to 4.2 lakh units per annum. TPEML will make the necessary investments to reconfigure the plant to adapt to Tata Motors’ existing and future vehicle platforms, the automaker said.

    The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand, which should help in a smooth transition, it added. “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,” Tata Motors Passenger Vehicles MD Shailesh Chandra noted.

    Ford Motor Company Transformation Officer Steve Armstrong said the announcement marks an important step forward in the company’s ongoing business restructuring in India.

    The company in September last year announced that it would stop vehicle production at its two plants in the country as part of a restructuring exercise. Both TPEML and FIPL will work together over the next few months to satisfy all the condition precedents and obtain the required regulatory approvals for the closure of the transaction, Tata Motors said.

    Related Post

    Most Popular

    Best Picks

    STMicroelectronics offers Cost-Effective, Fastest, and First STM32 MCUs to Support Bootflash

    STMicroelectronics is a global leader in the semiconductor space developing customer-centric and sustainable products. Their STM32 Portfolio is a hugely popular highly reliable and...

    India’s Promising EV Market is Lending Hope for an...

    The world faces serious environmental concerns that require immediate attention and progressive solutions. The human civilization is at a crossroads where every decision will...

    Sustainability is not just a corporate responsibility, but a...

    STMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications is among the early changemakers in the ongoing sustainability issue. The...

    Balancing Currents for Optimal Performance in Automotive Smart Drivers

    Author: Giusy Gambino, Marcello Vecchio, and Filippo Scrimizzi from STMicroelectronics, Catania, Italy When developing distributed intelligence for smart power switches in automotive power management systems, it...

    STM32CubeMX 6.11 opens its GUI to the boot flash...

    Author: STMicroelectronics  STM32CubeMX 6.11 is a new milestone as it allows developers to use the unique features of the new STM32H7R and STM32H7S. The software also continues...

    Raptee Sets the Stage for Two-Wheeler EVs in India

    Raptee is a full-stack two-wheeler EV startup with their flagship product highly tech-enabled and IoT-centred. The team began operations out of Chennai in 2019...

    Delta’s EV Charging Solutions Give Rise to Innovation with...

    Delta Electronics is a truly global brand operational across Asia, Europe, America, Australia, and New Zealand. The team is highly competitive and works towards...

    STM32 Summit: 3 important embedded systems trends for 2024

    Author: STMicroelectronics Where are embedded systems heading in 2024, and how can makers stay ahead of the curve? Few people used to ask these questions a...

    L99LDLH32 – 32-channel LED driver enabling the technology revolution...

    Author: Bipin Pande, Technical Marketing Manager, STMicroelectronics Pvt Ltd STMicroelectronics’ L99LDLH32 linear current regulator delivers a convenient, integrated solution for dynamic automotive lighting controlled using CAN-FD...

    Must Read