Tata finalizes its acquisition of Ford India's Sanand plant

The acquisition will add an annual production capacity of 3,00,000 units to Tata's existing setup.

Tata Motors and Ford India have signed a Unit Transfer Agreement (UTA) for the transfer of the latter’s manufacturing plant situated at Sanand, Gujarat.

As part of the agreement, Tata Motors will acquire the entire land, building and vehicle manufacturing plant along with machinery and other equipment at a cost of Rs. 725.7 crores (excluding taxes).

The deal also includes the transfer of all eligible employees of Ford India’s vehicle manufacturing operations at Sanand.

Ford India will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the plant from Tata Motors. Tata has also agreed to offer employment to the eligible employees of the Powertrain Manufacturing Plant if Ford ceases operations.

The government of Gujarat, Tata Motors and Ford India signed a memorandum of understanding (MoU) to acquire the production facility on May 30, 2022. Tata plans to make further investments to reconfigure the plant to adapt to its existing and future vehicle platforms. It would unlock an annual production capacity of 3,00,000 units, which is scalable to 4,20,000 units.