Tata Motors Limited’s electric car subsidiary, Tata Passenger Electric Mobility Limited (TPEML), acquired Ford India’s production facility in Sanand, Gujarat.

According to the terms of the agreement with Ford India, TPEML now owns land, the vehicle manufacturing plant, machinery, and equipment, as well as all qualified personnel.

This announcement comes at a time when Tata Motors is experiencing manufacturing capacity restrictions in its existing plants, resulting in lengthier wait times for some car models. Following this acquisition, the company’s present manufacturing capacity of 3,000,000 units per year might be increased to 4,200,000 units per year.
The domestic automobile maker has stated that the acquisition of the Sanand facility will be finalised on January 10, 2023.

Tata Motors had stated in an exchange filing that “Tata Passenger Electric Mobility had executed a Unit Transfer Agreement on August 7, 2022, for the acquisition of Ford India’s manufacturing plant located at Sanand, Gujarat, which inter alia includes: I entire land & buildings; (ii) Vehicle Manufacturing Plant along with machinery and equipment situated thereon; and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a tot.

The company also disclosed that the transaction will be finalised on January 10, 2023, as both parties have satisfied the requisite conditions precedent and obtained the appropriate government clearances.

All qualified employees of Ford’s car manufacturing factory have been offered employment with Tata’s EV subsidiary on comparable terms, conditions, and service benefits.