Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors and Ford India (FIPL), have today signed a Memorandum of Understanding (MoU) with the Government of Gujarat for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility.

The acquisition of state-of-the-art plant including land & buildings, vehicle manufacturing plant, machinery and equipment and transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals.

FIPL will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from TPEML.

TPEML would invest into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles. With the proposed investments, it would establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units.

This MoU will be followed by signing of the definitive transaction agreements between TPEML and FIPL over the next few weeks.