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Tata Motors to acquire Ford India’s plant

Mumbai: Leading automobile manufacturer in the country, Tata Motors has decided to acquire a vehicle manufacturing plant owned by Ford India. Tata Passenger Electric Mobility Ltd (TPEML) has signed a memorandum of understanding (MOU) with the Gujarat government for this. TPEML is a subsidiary of Tata Motors.

TPEML will acquire the Sanand plant in Gujarat of Ford India. It includes land, buildings, vehicle manufacturing plant, machinery and equipment. All eligible employees working in the plant  will be retained.  The acquisition will increase the production of electric vehicles by Tata in the country.

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‘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. This potential transaction will support the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space’, said  Tata Motors Passenger Vehicles Ltd and TPEML MD Shailesh Chandra.

Tata will  invest in new machinery and equipment at the plant through its electric mobility unit and expects the facility to have a production capacity of 300,000 units each year after the works complete. The capacity can be increased to more than 400,000 units.

Tata Motors is  the dominant player in the electric vehicles segment in India. Tata last year raised $1 billion from private equity firm TPG for its electric vehicle business.

Ford India had decided to stop vehicle production last year. The US based company took this decision as it only had a less than 2% share of the passenger vehicle market in India.


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