Tata Motors to use Ford’s Gujarat facility to power its EV ambitions
Author : Pankaj Singh | Published Date : 2022-08-08
Ford India Private Limited (FIPL) and Tata Passenger Electric Mobility Limited (TPEML), a division of Tata Motors Ltd., have reportedly signed a Unit Transfer Agreement (UTA) for the purchase of Ford’s production facility in Sanand, Gujarat.
Tata intends to produce and distribute electric automobiles at this facility, further allowing it to increase its annual production from the initial target of 300,000 EV units to 420,000 units per annum. The company currently operates at around 90% capacity and will require additional production capacity to sustain this momentum of crossing half a million annual sales this financial year.
The Indian automaker currently produces its units at Ranjangaon and Pune in Maharashtra as well as in Sanand, Gujarat. According to Tata, the deal has been finalized at USD 94 million, with the arrangement involving Ford’s vehicle manufacturing plant along with other land & buildings, machinery & equipment, and the transfer of eligible employees at Sanand.
The statement further showed that Ford India would keep on running its powertrain producing facility by renting back the land and buildings of the powertrain fabricating plant from Tata under commonly pleasing terms. Moreover, Tata Motors has consented to offer work to the qualified representatives of Ford’s powertrain producing plant in case of the American automaker further discontinues any activities.
The Managing Director of Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, Shailesh Chandra cited that the deal with Ford India Private Limited will be useful to all shareholders as well as would reflect Tata Motors' ambition to reinforce its market position in the passenger vehicles segment and to keep on expanding its leadership role in the electric vehicle segment.
Although the two companies have signed an agreement, the deal is still subject to government approval.
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Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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