Tata Passenger Electric Mobility Limited (TPEML) — the newly constituted EV subsidiary of Tata Motors — and Ford India Private Limited (FIPL) have signed a Unit Transfer Agreement (UTA) which allows Tata Motors to acquire the latter’s manufacturing plant in Sanand, Gujarat. This comes almost a year after Ford announced its exit from India in September 2021; a Memorandum of Understanding (MoU) was signed with the Gujarat government in May this year.
The acquisition of the plant gives Tata Motors possession of the land and buildings, the manufacturing plant and the machinery and equipment within, and most importantly, all eligible employees of Ford India’s Sanand plant — for a total consideration of ₹ 725.7 crore.
Ford will continue to make engines at the Sanand plant for its operations worldwide, as was part of the agreement. For this, Ford will lease back the land and buildings of the powertrain manufacturing plant from Tata on mutually agreed terms. In case Ford ceases this operation in the future, TPEML has agreed to offer employment to eligible employees from that plant as well.
