In this situation, Tata Motors is to buy the Gujarat plant of Ford, the leading automobile company in the United States. A few days ago, Ford announced that it would stop production in factories in India.
Following this, Tata Motors set out to capture Ford India’s car manufacturing plant in Sanan, Gujarat. Tata Motors, meanwhile, has backtracked on a sudden announcement by Ford that it plans to launch its electric vehicle there. But due to the series of losses, Ford decided not to make any further investments in India.
Following this, Ford executives decided to sell their factory in Sanan, Gujarat. With the approval of the Gujarat Legislative Assembly, a Memorandum of Understanding (MoU) with the state government was signed yesterday. Tata Motors has entered into an agreement with its subsidiary Ford India and the Government of Gujarat to acquire the Sanand plant.
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Tata Passenger Electric Mobility, a subsidiary of Tata Motors, has signed a Memorandum of Understanding (MoU) with Ford India. According to it the land of the manufacturing plant, buildings and vehicle manufacturing plant with its machinery and equipment is for purchase. Accordingly, the employees of the plant will soon be working under the Tata Passenger Electric Mobility Division.
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Shailesh Chandra, MD, Tata Passenger Electric Mobility, says, “Passenger and electric vehicles manufactured by Tata Motors have been on the customer wish list for the past few years, leading to our corporate growth. This potential transaction will support capacity expansion, which will enable future growth and further strengthen our position in the passenger and electric vehicle space. ”
In the next few weeks, Tata Passenger Electric Mobility (TPEML) and Ford India Pvt Ltd (FIPL) will sign deals related to the transaction. TPEML then plans to invest in new machinery and equipment, which will be required to commission and prepare the unit to manufacture its vehicles. Powertrain is to be manufactured at the Board India plant. The plant can produce three lakh units every year.
The deal is aimed at improving the production of PV and EV vehicles at Tata Motors. Tata Motors Passenger Vehicles Ltd in Sanand is considered to be the most useful for production as it is close to the company.
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Commenting on the development, Rajiv Kumar Gupta, Additional Chief Secretary, Gujarat, said, “This Memorandum of Understanding is a gift of success to all stakeholders and ensures smooth transition. The initiative strengthens the image of Gujarat as a progressive, investment-friendly state and its determination to further strengthen the state as the country’s leading auto hub. ”
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