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Tata Motors to Acquire Ford India’s Sanand Plant for Rs. 725.7 Crore

Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, signed a Unit Transfer Agreement (UTA) on 7th August 2022 with Ford India Private Limited (FIPL) to acquire Ford’s Sanand Plant in Gujarat for Rs. 725.7 crore.

As per Tata Motors’ press release, this agreement includes the transfer of the plant’s land and buildings, the vehicle manufacturing plant with associated machinery and equipment and all eligible employees. However, the plant’s powertrain manufacturing facility will continue to be operated by Ford. For this Ford India (FIPL) will lease this facility from Tata Motors (TPEML).

Ford’s Sanand plant has a manufacturing capacity of 3 lakh units per annum, which can be scaled up to 4.2 lakh units per annum. As per Tata Motors, this acquisition will help ease the saturation of production capacity that the company was approaching otherwise.