Tata Motors announced on Monday the signing of a three-way agreement with Ford and the Gujarat government to purchase the American automaker's car production factory in Sanand.
Tata Passenger Electric Mobility (TPEML), a Tata Motors subsidiary and Ford India (FIPL) signed a memorandum of understanding (MoU) with the Gujarat government for the potential acquisition of FIPL's Sanand facility, including land, buildings, vehicle manufacturing plant, machinery, and equipment, Tata Motors said in a filing.
According to the MoU, all eligible personnel of FIPL Sanand's car manufacturing activities would be transferred, subject to the signing of definitive agreements and the acquisition of applicable clearances.
"Tata Motors has had a long history in Gujarat, having its production facilities in Sanand. This MoU reaffirms our commitment to the state "Shailesh Chandra, MD of Tata Motors Passenger Vehicles and TPEML.
Rising consumer choice for Tata Motors' passenger and electric cars has resulted in the company's multifold expansion over the last five years, he noted. "This possible deal will enable capacity development, safeguarding future growth, and the ability to further expand our position in the passenger and electric car industry," added Chandra.
The MoU will be followed by the signing of formal transaction agreements between TPEML and FIPL in the coming weeks, according to the automaker. TPEML intends to invest in new gear and equipment to commission and prepare the plant for car production.
It will develop an installed capacity of 3 lakh units per year with the projected investments, which would be expandable to more than 4 lakh units.
