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Tata Passenger Electric Mobility Limited, a subsidiary of Tata Motors Ltd (FIPL), and Ford India Private Limited, (FIPL) have signed a Memorandum of Understanding with the Government of Gujarat. This MOU covers Land & Buildings, Vehicle Manufacturing Plant, Machinery and Equipment. Transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations. All agreements must be signed and approved. FIPL will lease the Powertrain unit’s land and buildings from TPEML to operate its manufacturing facilities.
Tata Motor’s Passenger and Electric Vehicles have seen market-beating growth over the past two years with its “New Forever” range of products. With our strong pipeline of future-ready products and proactive investments in Electric Vehicles, this growth momentum will continue. To sustain this growth, TML will need to increase its PV/EV manufacturing capabilities in the next few years.
Sanand, India is home to the Ford India vehicle manufacturing plant. It is state-of-the-art. TPEML will invest in new machinery and equipment that is required to commission the unit and make it ready for production. It would have an installed capacity to produce 300,000 units annually. This would allow it to scale up to more than 400,000 units. This will likely take several months. The MOU to acquire this unit is a win-win situation for all parties and Tata Motors accelerates its PV/EV manufacturing capabilities. The unit is located adjacent to Tata Motors Passenger Vehicles Ltd’s Sanand manufacturing plant, which should facilitate a smooth transition.
Dr Rajiv Kumar Gupta (IAS, Additional Chief Secretary Government of Gujarat) announced the signing of the MoU. He stated that the MoU was intended to foster a win-win situation for all stakeholders and facilitate a smooth transition. This initiative reinforces Gujarat’s reputation as an investment-friendly, progressive state. It also demonstrates the state’s determination to strengthen its position as the nation’s leading automotive hub. It will increase the confidence of the international investor community, strengthen Gujarat’s position in the country as the top destination for investment and further consolidate the Atmanirbhar vision by our Hon’ble Prime Minster em>
Shailesh Chandra (Managing Director, Tata Motors Passenger Vehicles Limited) and Tata Passenger Electric Mobility Limited spoke on the occasion. He said that Tata Motors has been a strong presence for over a decade in Gujarat with its own manufacturing plant at Sanand. The MoU strengthens our commitment to the state by creating new employment opportunities and business opportunities. The company has seen a multifold increase in customer demand for Tata Motors’ passenger and electric cars over the last few years. This transaction could allow us to expand our capacity and strengthen our position in passenger and electric vehicle space em>
The MOU will be followed up by the signing of definitive transaction agreements between TPEML FIPL in the coming weeks.