Tata Motors buy Ford India’s Sanand plant for Rs 725 crores

Tata Passenger Electric Mobility Limited (TPEML) has offered jobs to the eligible employees of Ford’s Sanand plant. Additionally, it will also offer 3,043 and 20,000 direct and indirect jobs respectively.


  • Ford India will continue to operate its powertrain manufacturing facility at the Sanand plant, as per the agreement.
  • A three-way, memorandum of understanding (MoU) has been enforced for approval and supporting the pact.
  • Tata Motors, manufacturing capacity can also be increased up to 4.2 Lakh units per year.

On 08 Aug 2022, a Unit Transfer Agreement (UTA) has been signed between Tata Passenger Electric Mobility Limited (TPEML), a subsidiary branch of Tata Motors, and Ford India Private Limited (FIPL) to purchase Ford India’s manufacturing unit in Sanand, Gujarat at Rs 725.7 crore.

TPEML brought the manufacturing unit along with the land, buildings, machinery, equipment, etc. Additionally, the eligible employees working at the Ford manufacturing plant of Sanand will be shifted to TPEML.

Moreover, the TPEML also offers 3,043 and  20,000 direct and indirect jobs respectively.

Tata Motors Sanand Plant

As per the agreement, on mutual accord by leasing back the land and buildings of the powertrain manufacturing plant from TPEML, Ford India will continue to operate its powertrain manufacturing facility.

This pact will be closed when the approvals from government authorities will be fulfilled, as on 30th May 2022 the TPEML, FIPL, and the government of Gujarat has enforced a three-way, memorandum of understanding (MoU) for approval and support of the above pact.

This MoU aims to promote a win-win situation for all parties involved and ensure a smooth transition for all the stakeholders, said Rajiv Kumar Gupta, Additional Chief Secretary Gujarat.


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According to Tata Motors, the acquired plant of Sanand Gujarat will be open with added 3 Lakh units per year manufacturing capacity, additionally if required it can also be increased to  4.2 Lakh units per year.

For the smooth functioning and to adapt the Tata Motors’ existing and future vehicle platforms, (TPEML) Tata Passenger Electric Mobility Limited will make the necessary investments to reconstruct the plant.

The agreement signed between TPEML and FIPL is a move toward reinforcing a strong market position and leading in the Passenger Electric Vehicle segment as well as the passenger vehicle segment, said MD, Tata Passenger Electric Mobility Limited, Shailesh Chandra.

He further added,” This agreement is a move towards building a future-ready Atmanirbhar Bharat, which will accelerate the growth and development of the Indian automotive Industry.”

Sima Sharma

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