Tata Motors said on Monday that its electric mobility unit has signed a memorandum of understanding (MoU) for a potential acquisition of Ford Motor's Sanand vehicle manufacturing facility in Gujarat.
Ford India "will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from Tata Passenger Electric Mobility," the Indian automaker said.
"This MoU will be followed by signing of the definitive transaction agreements between Tata Passenger Electric and Ford India over the next few weeks," it added.
Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said, "Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years. This potential transaction will support the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space."
The MoU between Tata Passenger Electric Mobility, Ford India and the Gujarat government includes land, assets, and transfer of all eligible employees working at the Sanand facility.
Shares of Tata Motors were up as much as 2.46 per cent at Rs 440.15 in late morning deals.
Last year, Ford stopped production in India after struggling for more than two decades to generate profits.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
