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Tata Motors Signs MoU to Acquire Ford Plant
Tata Motors noted that the MoU for the potential acquisition of Ford India’s Sanand plant is a win-win for all stakeholders

Tata Motors have put pen to paper to agree into a memorandum of understanding with the government of Gujarat, on the 30th of May for the transfer of ownership of an automobile manufacturing plant which was built and operated by Ford Motors India.

This deal encapsulates all the assets in the plant including the land, the infrastructure, the cars and other vehicles used for operations, machinery, and all the employees who were working at the plant.

ford india plant BY toi

Tata Motors’ subsidiary Tata Passenger Electric Mobility Limited which is a company that produces and sells Tata electric cars will be planning to revamp the entire plant to install the latest machinery and technology to produce their cars.

According to the company’s calculation, they will be able to produce around 3 lakh cars every year which could rise up to 4 lakhs when they scale the production up but that will take a couple of months. With this new acquisition, Tata can now ramp up their production and sales of electric vehicles making it go mainstream and also helping in contributing to an emission free travel.

They even went on to say that this deal will be helping all parties involved including everyone has been working at the plant. The plant is currently situated in Sanand, a city in Gujarat but has not been operational for about a month now.

Tata already have their own manufacturing plant in Sanand, meaning that this will be their second plant in the city which will help them transition into using this new plant.

With Ford Motors announcing their departure from the Indian market around half a year ago, the company is looking to sell all their infrastructure and exit the country as soon as possible and continue their focus in other automobile markets. This is one of the main reasons that the transfer of ownership of the plant and including assets was able to take place in a swift manner.

The Gujarati government is also looking to be known as a state that is open to investments, businesses and start-up companies establishing themselves here and this is a great show for that. The state is looking to be an entrepreneurial and industrial hub and Tata now setting up two automobile plants puts the state in a great spot to establish themselves as one. This is deal that is going to help everyone involved and it seems like especially a great deal for Tata.



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