Tata Passenger Mobility Limited (TPEML), the EV subsidiary of Tata Motors has completed the acquisition of Ford India Pvt Ltd’s Sanand manufacturing facility. The two companies had entered into an agreement for the sale of the plant in August last year in a deal worth Rs 725.7 crore.
Under the agreement between the two companies TPEML takes over the entire land and build, vehicle manufacturing plant and machinery and eligible employees working at Ford’s manufacturing plant. Tata had earlier this month announced that the deal was set to close on January 10 as all criteria and approvals for the acquisition had been met.
Also read: Tata Motors To Complete Acquisition Of Ford’s Sanand Plant On January 10, 2023
All eligible employees who agreed to transfer from Ford to TPEML from today forward become employees of the latter.
“TPEML extends a warm welcome to all such VM Employees who have accepted its offer of employment,” the firm said in a statement.
The new plant gives Tata Motors an additional production capacity of up to 3 lakh units per annum scalable up to 4.20 lakh units per year. The added production capacity should help Tata bolster its production numbers along with aiding in reducing waiting periods for some of its models.
Ford meanwhile is expected to lease back its powertrain manufacturing facility from Tata at its Sanand site and continue to produce powertrains in the country.