HomeBusinessTATA Motors Passenger Electric Mobility unit completes Ford India's Sanand plant takeover

TATA Motors Passenger Electric Mobility unit completes Ford India’s Sanand plant takeover


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.

Frontier India News Network
Frontier India News Networkhttps://frontierindia.com/briefs
Frontier India News Network is the in-house news collection and distribution agency.


Please enter your comment!
Please enter your name here

C-40A Clipper Arrives at NAS Fort Worth to Boost Marine Corps Airlift Capabilities

Marine Transport Squadron 1 (VMR-1) held a ceremony on May 19 at Naval Air Station Joint Reserve Base Fort Worth to honour the arrival...

Gaganyaan Recovery Training Plan Released: Indian Navy & ISRO Ready for Vyomanauts Return

At the Water Survival Training Facility (WSTF) INS Garuda in Kochi on May 24, the Indian Navy and the ISRO (Indian Space Research Organisation)...

Ukraine receives the 2nd IRIS-T SLM fire unit

Diehl Defence and its industrial partners HENSOLDT and Airbus have delivered the second fire unit of the IRIS-T SLM air defence system to Ukraine....

Iran and Russia to Discuss Currency and Finance Agreements to Counter Sanctions

Russian government and enterprises followed American sanctions against Iran and refrained from selling weapons to Tehran until recently. However, Russia is now willing to...

INS Vikrant Docks at New Two Deck Pier in Karwar

The Indian Naval Ship (INS) Vikrant docked at Karwar's recently built Aircraft Carrier pier today. The pier was created as part of Project Seabird, which...