Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Limited (TML), and Ford India Private Limited (FIPL and together with TPEML, Parties) executed a Unit Transfer Agreement on August 7, 2022, for the acquisition of FIPL’s manufacturing plant located at Sanand, Gujarat, which includes the entire land & buildings, Vehicle Manufacturing Plant along with machinery and equipment situated therein, and the transfer of all eligible employees of FIPL’s Sanand plant.
TPEML, on January 10, said in a release that it has successfully completed the purchase of the Sanand Property as well as the VM Plant and Machinery as a result of the fulfilment of all essential conditions precedent, which included the acquisition of all relevant governmental approvals. The deal between the parties was finalised on the same day, and TPEML is now the owner of the Sanand Property as well as the VM Plant and Machinery. In addition, all VM Employees have been extended job offers, and those VM Employees who have accepted TPEML’s offer of employment have been transferred to TPEML and are now working for TPEML as of January 10 2023.
The release said that Tata Motors Passenger & Electric Vehicles business has generated market-beating growth over the past few years and has solid plans to maintain this momentum with its deep pipeline of new products and proactive investments in electric vehicles. This acquisition will free up an additional manufacturing capacity of 300,000 units per year, with the potential to increase that number to 420,000 units per year. This capacity will become available as the capacity of existing facilities approaches its limit.
A 2022 release stated that Ford India would keep its powertrain manufacturing facility operational by leasing back the land and buildings that belonged to Tata Passenger Electric’s powertrain production unit.
After racking up more than $2 billion in operational losses over the course of the previous decade and a non-operating write-down of assets of $0.8 billion in 2019, Ford India announced the decision to restructure their business in September 2021.
At the Sanand Engine plant, more than 500 workers produced engines for export for the Ranger pickup vehicle, while around 100 workers handled the distribution of parts and provided customer care.
The statement stated that Ford would start importing and selling automobiles, which would include the Mustang coupe. In the long run, Indian customers would also profit from the company’s aim to invest more than $30 billion worldwide in the development of all-new hybrid and fully electric vehicles, such as the Mustang Mach-E. Current goods like the Figo, Aspire, Freestyle, EcoSport, and Endeavour will no longer be available for purchase after existing dealer stockpiles have been depleted. Sales of these vehicles will also be terminated.
Ford India has closed its car factory near Chennai.