Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India, a subsidiary of Ford Motor Company (US) have signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG). The MoU is for the potential undertaking of Ford’s Indian manufacturing facility including, land and buildings, vehicle manufacturing plant, machinery and equipment, and for the transfer of all eligible employees by Tata Motors.
Ford India will operate its powertrain manufacturing facilities by leasing back the land and buildings of the powertrain unit from TPEML. This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand.
TPEML will invest in new machinery and equipment to get the unit ready to produce its vehicles. With the proposed investments, it will establish an installed capacity of 300,000 units per year, which would be scalable to more than 400,000 units if necessary.
Announcing the signing of this MoU, Dr Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, said, “This MoU is intended to catalyse a win-win for all the stakeholders and ensure a smooth transition. This effort reinforces Gujarat’s image as a progressive, investment-friendly state and its resolve to further strengthen the state as a leading automotive hub in the country. It will boost the confidence of the international investment community, reinforce Gujarat’s position as the top investment destination in the country and further strengthen the Atmanirbhar vision of our Hon’ble Prime Minister.”
Speaking on the occasion, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, said, “Tata Motors has a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities. Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”
