Tata Passenger Electric Mobility Limited (TPEML) announced on December 30, 2022, that the Sanand plant deal would be completed on January 10, 2023. TPEML is a subsidiary of Tata Motors and Ford India. In August 2022, the company signed a unit transfer agreement to purchase Ford’s manufacturing facility in Sanand, Gujarat.
Along with this purchase, Tata Motors will also take control over the land, buildings, and vehicle manufacturing plant, including equipment and machinery. It will also transfer eligible Ford employees stationed at the vehicle manufacturing operations in Sanand, Gujarat, for a total of over Rs 700 crore.
In the Indian auto industry market, which is dominated by Maruti and Hyundai, Ford has spent years trying to be more profitable.
In September last year, Ford India stated that it would “take a hit of about $2 billion as it does not see a path to profitability in India.”
Because of weak demand, competitors’ low-cost vehicles, and a failed joint venture (JV) with Mahindra, Ford has announced its exit.
This acquisition, according to Tata Motors, will open up a new, cutting-edge capacity for production of 300,000 units per year, with room to grow to 420,000 units per year.