Tata Motors acquires Ford’s manufacturing plant in Gujarat for ₹726 crore

Ford India's production facility in Gujarat's Sanand city will be purchased by Tata Passenger Electric Mobility Limited (TPEML), a Tata Motors affiliate, for $725.7 crore, minus taxes.

To complete the transaction, the parties have already signed a Unit Transfer Agreement (UTA), which also provides for the transfer of all qualified staff of Ford India's car production operations to the Sanand facility. According to a joint statement, the unit's proximity to Tata Motors Passenger Vehicles Limited's current Sanand manufacturing facility should aid in a smooth transition.

Shailesh Chandra, MD of Tata Motors Passenger Vehicles and TPEML, said, "The agreement with FIPL (Ford India Private Limited) 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.

Along with the structures, the complete plot of land, and the machinery and equipment at the plant will all be transferred to Tata Motors. By re-leasing the plant's land and structures from Tata Passenger Electric Mobility on mutually agreeable terms, Ford India will be able to continue operating its Powertrain Manufacturing Facility.

In Ford's ongoing business reorganisation in India, which is a component of our Ford+ plan for strategic change, today's news represents a significant advancement. This accomplishment also demonstrates our best efforts in helping those affected by the restructuring, according to Steve Armstrong, transformation officer at Ford Motor Company, who said that the deal includes the transfer of employment for qualifying vehicle manufacturing personnel. On May 30, 2022, the Gujarati government and the two parties involved already signed a tripartite memorandum of understanding (MoU) to support the necessary transactional clearances. According to the statement, the transaction will only be completed once all necessary government clearances have been obtained and customary preconditions have been met.