As per the MoU, Ford India will function its Powertrain manufacturing services by leasing again the land and buildings of the Powertrain unit from TPEML
As per the MoU, Ford India will function its Powertrain manufacturing services by leasing again the land and buildings of the Powertrain unit from TPEML
Tata Passenger Electric Mobility Ltd (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Ltd (FIPL), have entered right into a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of FIPL’s Sanand automobile manufacturing facility together with Land & Buildings, Vehicle Manufacturing Plant, Machinery and Equipment and switch of all eligible staff of FIPL Sanand’s automobile manufacturing operations, topic to the signing of definitive agreements and receipt of related approvals.
As per the MoU, FIPL will function its Powertrain manufacturing services by leasing again the land and buildings of the Powertrain unit from TPEML.
TPEML would make investments into new equipment and gear which is critical to fee and make the unit prepared to supply its automobiles.
With the proposed investments, it will set up an put in capability of 300,000 models every year, which might be scalable to greater than 400,000 models.
“We anticipate this to take a few months. This MOU for a potential acquisition of this unit, is a win-win for all stakeholders and helps Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity. This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition,” Tata Motors mentioned in a press release.
‘Win-win for all stateholders’
Rajiv Kumar Gupta, IAS, Additional Chief Secretary, Government of Gujarat, mentioned, “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.”
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited,mentioned, “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 expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space.”
This MOU will probably be adopted by signing of the definitive transaction agreements between TPEML and FIPL over the following few weeks.
Source: www.thehindu.com
