Tata Motors recently signed an agreement to acquire Ford Motor’s manufacturing unit in India’s western Gujarat state for Rs 7.26 billion (USD 91.5 million).
The agreement signed between the two companies includes land, buildings, vehicle manufacturing plant, machinery, and equipment and also covers all the employees, pegged at 1,400, in Sanand.
Ford’s manufacturing unit is near the existing manufacturing plant of Tata Motors Passenger Vehicles Limited. The Indian automaker said that the acquisition of the Sanand plant would unlock a manufacturing capacity of 300,000 units per year that could increase to 4,20,000.
The two companies signed a unit transfer agreement (UTA) on Sunday, 7th August 2022, Tata Motors said in a statement.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, in a statement, said, “The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors’ strong aspiration further to strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment. It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future-ready Atmanirbhar (self-reliant) Bharat”.Â
Source: Wion